Neagle Company bought machinery on January 1, 20-1 at a cost of $100,000. The machinery had an estimated life of 10 years and salvage value of $10,000. In December 20-1, Neagle estimated that the machinery will have a life of 5 years and a $12,000 salvage value. Neagle uses straight-line amortization. Calculate the annual amortization for two years.