Chattanooga Company purchased a depreciable asset for $80,000 on January 1, 2012. The estimated salvage value is $20,000, and the estimated useful...

Chattanooga Company purchased a depreciable asset for $80,000 on January 1, 2012. The estimated salvage value is $20,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation. On January 1, 2014, the company made a capital expenditure of $16,000 for an addition to the asset. What is depreciation expense for 2014?