ABC Corp purchased a computer for $8,480 on January 1, Year 2. Straight-line depreciation is used for the computer, based on a five-year life and a $1,226 residual value. In Year 4, the estimates are revised. ABC now expects the computer will be used until December 31, Year 5, when it can be sold for $619. What depreciation expense is recorded in Year 4 if the company has a December 31 year end?

a. $2,604

b. $2,418

c. $2,542

d. $2,666

e. $2,480