12. On January 1, Year 1, Fulsom Corporation purchased a machine for $50,000. Fulsom paid shipping expenses of $500 as well as installation costs of $1,200. Fulsom estimated the machine would have a useful life of ten years and an estimated salvage value of $3,000. If Fulsom records depreciation using the straight-line method, depreciation expense for Year 2 is a. $4,870. b. $5,170. Cost of Asset: 50,000 purchase price 500 shipping cost 1,200 installation cost 51,700 total cost Depreciation calculation: ( cost - salvage )/ useful life = (51,7003000)/10=4870