A company paid $505,000 to purchase equipment and $15,500 to have the equipment delivered to and installed in the company's production facilities. The equipment is expected to be used a total of 28,500 hours throughout its estimated useful life of seven years. The estimated residual value of the equipment is $5,500. The company began using the equipment on May 1, 2018. The company has an October 31, 2018 year-end. It used the equipment for a total of 11,700 hours between May 1 and October 31, 2018. Using the units-of-production method, what amount of depreciation expense would the company report in the income statement prepared for the year-ended October 31, 2018?