In year 1, a company purchased equipment that cost $70,000. The equipment has a useful life of seven years and no salvage value. The company used the straightline method to depreciate the equipment and reported $10,000 of depreciation expense in years 1 and 2. At the beginning of year 3, the company determines that the equipment will last for only three more years (five years total) and changes the depreciable life of the asset accordingly. What amount of depreciation expense should the company report in year 3?

Group of answer choices

$10,000

$14,000

$16,667

$22,000