9) Montana Company purchased a machine on January 1, 2019, for $800,000. At the date of acquisition, the machine had an estimated useful life of ten years with no salvage. The machine is being depreciated on a straight-line basis. On January 1, 2022, Montana determined that the machine had an estimated useful life of fourteen years from the date of acquisition with no salvage. An accounting change was made in 2022 to reflect this additional information. What is the amount of depreciation expense for the year ended December 31, 2022?

10.) Yellow Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/20 and 12/31/21 contained the following errors:

2020 2021

Salary Expense $40,000 understatement $60,000 overstatement

Depreciation expense 15,000 understatement 40,000 overstatement

Assume that the 2021 errors were not corrected and that no errors occurred in 2019. By what amount will 2021 income before income taxes be overstated or understated?