Hanson Company purchased a piece of equipment for $1,730,000 and placed it in operation on January 1, 2016. Depreciation was recorded for 2016, 2017, and 2018 using the straight-line method, a 10-year life, and an expected residual value of $63,000. Based on the Hanson Companys usage of the equipment through 2018, they believe that the useful life of the equipment will be longer than they had originally estimated. They have revised the estimated life of the equipment to be a total of 12 years. Because they will be keeping the equipment in service longer, they have reduced their estimate of the residual value to $27,000.

REQUIRED: Compute the depreciation expense on the equipment for 2019 assuming that Hanson Company has been reporting on a December 31 year-end. Please round to dollars at every step. You must show and label all of your work to receive any credit.