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ABC Industries purchased a machine for $41,700 and is depreciating it with the straight-line method over a life of 8 years, using a residual value
ABC Industries purchased a machine for $41,700 and is depreciating it with the straight-line method over a life of 8 years, using a residual value of $2,500. At the beginning of the sixth year, an extraordinary repair was made costing $2,500, the estimated useful life was extended to 13 years (that extended life is the new estimate for the life of the machine from the date of the original purchase), and no change was made to the estimated residual value. Calculate depreciation expense for year 6. (Do not round intermediate calculations.)
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