A machine was purchased for $37,000 and depreciated for five years on a straight-line basis under the assumption it would have a ten-year life and a $1,000 salvage value. At the beginning of the machine's sixth year it was recognized the machine had three years of remaining life instead of five and that at the end of the remaining three years its salvage value would be $1,600. What amount of depreciation should be recorded in each of the machine's remaining three years?

Follow these steps:
1. Calculate net book value at the end of 5 years
2. Deduct expected salvage value from the net book value to obtain depreciable cost
3. Divide depreciable cost be the remaining useful life for depreciation for each of the remaining years of life
4. Solve it and submit your answer for correction, if any