The following information is available on a depreciable asset: Purchase date Purchase price Salvage value Useful life Depreciation method January 1, Year 1 $108, 000 $10,000 10 years straight-line The asset's book value is $88,400 on January 1, Year 3. On that date, management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during Year 3 would be: