A company has purchased equipment on January 1, 2021, for $560,000. In 20212023, the company depreciated the asset on a straight-line basis with an estimated service life of eight years and an $80,000 residual value. In 2024, the company has started to change its business strategy and now believes that the equipment will be used for only another two years (five years total) but does not believe the residual value has changed. What depreciation would the company record for the year 2024 on this equipment?

$124,000

$150,000

$96,000

$175,000