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Acquisition Cost and Depreciation Reveille, Inc., purchased Machine #204 on April 1, 2016, and placed the machine into production on April 3, 2016 . The

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Acquisition Cost and Depreciation Reveille, Inc., purchased Machine #204 on April 1, 2016, and placed the machine into production on April 3, 2016 . The following information is relevant to Machine #204: Price Freight-in costs Preparation and installation costs Labor costs during regular production operation Credit terms Total productive output $60,000 2,500 3,900 10,200 2/10, n/30 138,500 units The company expects that the machine could be used for 10 years, after which the salvage value would be zero. However, Reveille intends to use the machine only 8 years, after which it expects to be able to sell it for $9,800. The invoice for Machine #204 was paid April 10, 2016, The number of units produced in 2016 and 2017 was 23,200 and 29,000, respectively. Reveille computes depreciation expense to the nearest whole month

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