Murgatroyd Co.purchased equipment on January 1,2014,for $500,000,estimating a four-year useful life and no residual value.In 2014 and 2015,Murgatroyd depreciated the asset using the sum-of-years'-digits method.In 2016,Murgatroyd changed to straight-line depreciation for this equipment.What depreciation would Murgatroyd record for the year 2016 on this equipment?

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The sum-of-years'-digits method results in higher depreciation in the earlier years. By 2016, two years of depreciation have been recorded. The remaining book value is depreciated over the remaining useful life using the straight-line method. The remaining book value is $150,000, and with two years left, the annual depreciation is $75,000.