Question: On January 1, 2014, Bob's Machining Co. purchased a compressor and related installation equipment for $69,900. The equipment had a three-year estimated life with a $4,500 salvage value. Straight-line depreciation was used. At the beginning of 2016, Bob revised the expected life of the asset to four years rather than three years. The salvage value was revised to $3,500.
Compute the depreciation expense for each of the four years.