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Red Corp. constructed a machine at a total cost of $72 million. Construction was completed at the end of 2012 and the machine was placed in service at the beginning of 2013. The machine was being depreciated over a 9-year life using the straight-line method. The residual value is expected to be $4 million. At the beginning of 2016, Red decided to change to the sum-of-the-years'-digits method. Ignoring income taxes, what will be Red's depreciation expense for 2016?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92808078

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