Lauter Tun Corporation uses straight-line depreciation. Lauter Tun Corporation acquired equipment on January 1, 2012, for $300,000. The equipment had an estimated useful life of 10 years and an estimated salvage value of $25,000. On January 1, 2015, Lauter Tun Corporation revised the total useful life of the equipment from the previous 10 years to 5 years and the estimated salvage value to be $20,000.

Compute depreciation expense for the year ending December 31, 2016.