On January 1 2020, the Blue Spruce Company ledger shows Equipment $40,000 and Accumulated Depreciation-Equipment $9,700. The depreciation resulted from using the straight-line method with a useful life of 9 years and salvage value of $3,200. On, this date, the company concludes that the equipment has a remaining useful life of only 4 years with the same salvage value.

Compute the revised annual depreciation