The following information is available on a depreciable asse…

The fоllоwing infоrmаtion is аvаilable on a depreciable asset: Purchase date January 1, Year 1 Purchase price $76,000 Salvage value $10,000 Useful life 10 years Depreciation method straight-line The asset's book value is $62,800 on January 1, Year 3. On that date, management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during Year 3 would be: