Lorenzo Corporation purchased equipment on January 1, 2016 for $600,000. The equipment had an estimated useful life of 5 years and an estimated salvage value of $10,000. After using the equipment for 2 years, the company determined that the equipment could be used for an additional 6 years and have a salvage value of $2000. Assuming Lorenzo Corporation uses straight-line depreciation, compute depreciation expense for the year ending December 31, 2018. (Round your final answer to the nearest dollar.)

I have tried doing this multiple times but I am not getting the right answer. Please show work.