Red Corp. constructed a machine at a total cost of $70 million. Construction was completed at the
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Red Corp. constructed a machine at a total cost of $70 million. Construction was completed at the end of 2007 and the machine was placed in service at the beginning of 2008. The machine was being depreciated over a 10-year life using the straight-line method. The residual value was expected to be $4 million. At the beginning of 2011, Red decided to change the depreciation to the double-declining balance method. The residual value remains at $4 million.
Ignoring income taxes, what will be Red's depreciation expense for 2011?
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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