Ann item of equipment acquired on January 5, 1990, at a cost of $32,500, has an estimated residual value of $2,500 and an estimated useful life of 10 years. Depreciation has been recorded for the first 4 years ended December 31, 1993, by straight-line method.

a) Determine the amount of depreciation for the current year ended December 31, 1994, if the revised residual value is $2,100 and the revised estimated remaining useful life (including the current year) is 8 years.