Atlantic Company purchased a warehouse for $650,000 on January 1, 2005. Atlantic estimated that the life of the warehouse would be 10 years and the residual value at the end of 10 years would be $50,000.

Question - Assume Atlantic uses the Straight-line Method of depreciation for the warehouse. At the beginning of 2007, a new roof was put on the warehouse for $250,000. The new roof will add five years to the estimated useful life of the warehouse, but have no effect of the residual value. Determine the depreciation expense for 2007.