Apex Limited has a machine, which was bought 7-years ago at $700,000. The machine has a 7-years life. Since this machine got obsolete, Apex Limited is planning to buy a new machine. The company decided to buy it from a Japanese exporter at the cost of $700,000. To bring the machine from Japan, Apex Limited has to defray the shipping cost of $50,000. The new machine will be depreciated on a straight-line basis over 5 years to a zero balance, while the old machine was also depreciated on a straight-line basis. How much will be the incremental depreciation for the new machine?

Question 13 options:

a)

$100,000

b)

$50,000

c)

$0

d)	None of the above