The company purchased a machine for $60,000. The machine had an estimated residual value of $5,000 and an estimated useful life of 11 years. After two full years of experience with the machine, it was determined that its total useful life would be only eight years instead of 11. In addition, a revised estimate of $12,000 was made for the residual value, instead of the original $5,000. Compute depreciation expense for the third year. The company uses straight-line depreciation.