On January 1, 2020, the Novak Company ledger shows Equipment $62,000and Accumulated DepreciationEquipment $10,900. The depreciation resulted from using the straight-line method with a useful life of8years and salvage value of $2,500. On this date, the company concludes that the equipment has a remaining useful life of only4years with the same salvage value.

Compute the revised annual depreciation.

Revised annual depreciation