Gates CoPurchased Machinery on January 2, 2005, for $440,000

Gates Co.purchased machinery on January 2, 2005, for $440,000.The straight-line method is used and useful life is estimated to be 10 years, with a $40,000 residual value.At the beginning of 2011 Gates spent $96,000 to overhaul the machinery.After the overhaul, Gates estimated that the useful life would be extended 4 years (14 years total) , and the residual value would be $20,000.The depreciation expense for 2011 should be

A) $28,250.
B) $34,500.
C) $40,000.
D) $37,000.