In January 2008, Action Corporation entered into a contract to acquire a new machine for its factory. The machine, which had a cash price of \($150,000\), was paid for as follows:

Prior to the machine’s use, installation costs of \($4,000\) were incurred. The machine has an estimated useful life of 10 years and an estimated salvage value of $5,000.
Required:
What should Action record as depreciation expense for 2008 under the straight-line method?

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Down payment Note payable due June 1, 2008 500 shares of Action common stock with a value of $50 per share Total $ 15,000 120,000 25,000 $160,000