HealthTech Solutions acquired a biotechnology lab on 1 January 20X0 for $3,200,000 with an estimated residual value of $320,000 and an estimated useful life of 16 years. The company uses the straight-line depreciation method. Due to changes in the healthcare industry, the company now forecasts the following net cash inflows: $450,000 on 31 December 20X4, $400,000 on 31 December 20X5, and $350,000 on 31 December 20X6. The present values of $1 at the end of each year, using a discount rate of 7%, are: 0.93 for year 1, 0.88 for year 2, and 0.83 for year 3. Required: Calculate the annual depreciation expense and the carrying amount of the biotechnology lab as of 31 December 20X4. Using the revised net cash inflows and present values, calculate the recoverable amount of the biotechnology lab.