A company acquired a manufacturing plant for $$10$ million. They estimate a useful life of $20$ years and a residual value of $$500,000.$ After $8$ years, due to changes in market conditions, they assess that the fair value of the plant is now $$6$ million, and future expected cash flows are estimated to be $$700,000$ per year for the remaining useful life.

Calculate the annual depreciation expense using the straight$-$line method for the first eight years.

##

Please Don't use chatgpt or other ai tool. If you know correct answer then attempt if you gave wrong answer then i gave $34$ dislikes for you and more from my friend's accounts also.