On August 3, Franko Construction purchased special-purpose equipment at a cost of $7,400,000. The useful life of the equipment was estimated to be eight years, with an estimated residual value of $100,000. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the 200 percent declining-balance method half-year convention with a switch to straight-line when it will maximize depreciation expense. (for 9 years)