Something exceptional happened in the first year. The $700 was deducted as an allocation, and doesn't fit in with the rest of the schedule.
This works, though its something of a hack:
You might need to adjust the number of months down one too (you are really depreciating from the beginning of the second year, plus the $700 taken in the first year). Simplest would be to refer to the depreciation schedule itself as a firm number. Or add a column to show first year deprecation taken, and add that to the remaining depreciation taken starting with year two.