A company bought a piece of machinery on January 1, 2016 for $ 10,000 . The asset's residual value was $ 3,000 and the useful life was 5 years . At the beginning of 2018 , the residual value changed to $ 700 , and the asset is now expected to have a remaining of another two years ( 2018 and 2019 only , not 2020). If the company uses the straight - line method of depreciation , what would be the depreciation expense for 2018