$3,340 per year
The amount to depreciate per year is defined by the formula
D = (CV - SV)/L
where
CV = Current value
SV = Salvage value
L = Useful life
So with the initial values of $18,800 and $5,000 with an expected life of 6 years, we get:
D = ($18,800 - $5,000)/6
D = $13,800/6
D = $2,300
So for the 1st 3 years, $2,300 was depreciated for each year, resulting in a new current value of $18,800 - $2,300 * 3 = $18,800 - $6,900 = $11,900. We now have a new salvage value of $1,880 and an expected life of 3 more years. So:
D = (CV - SV)/L
D = ($11,900 - $1,880)/3
D = $10,020/3
D = $3,340
So for the remaining 3 years of life of the equipment, the amount of depreciation to be charged is $3,340 per year.
