On January 1, 2013, Muoy Machining Co. purchased a compressor and related installation equipment for $72,500. The equipment had a three year estimated life with a $12,500 salvage value. Straight line depreciation was used. At the beginning of 2015, Muoy revised the expected life of the asset to four years rather than three years. The salvage value was revised to $2,500.
Required:
Compute the depreciation expense for each of the four years.