Retail Innovations acquired a logistics hub on 1 January 20X2 for $4,500,000 with an estimated residual value of $450,000 and an estimated useful life of 20 years. The company applies the units-of-production depreciation method. Due to technological advancements, the company now forecasts the following net cash inflows: $600,000 on 31 December 20X5, $550,000 on 31 December 20X6, and $500,000 on 31 December 20X7. The present values of $1 at the end of each year, using a discount rate of 7%, are: 0.93 for year 1, 0.87 for year 2, and 0.81 for year 3. Required: Calculate the annual depreciation expense and the carrying amount of the logistics hub as of 31 December 20X5. Using the revised net cash inflows and present values, calculate the recoverable amount of the logistics hub.