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CarMax wishes to exchange a pre-fab building used in its operations. CarMax has received three offers from other companies in the industry, each of which

CarMax wishes to exchange a pre-fab building used in its operations. CarMax has received three offers from other companies in the industry, each of which lacks commercial substance: MCI WorldCom offered to exchange a Gulfstream G-450 jet, and pay $46,100. US Pharmaceutical offered to exchange a Black & Veatch knuckleboom loader, and pay $68,600. Dyna-Flex offered to exchange a Komatsu 120-ton truck, and pay $43,800. Information concerning each of the assets to be exchanged is noted below:

Cost Accum Depn Fair Value
CarMax--pre-fab building 315,000 240,000 187,800
MCI WorldCom--Gulfstream G-450 jet 240,000 190,100 141,700
US Pharmaceutical--Black & Veatch knuckleboom loader 315,000 240,000 119,200
Dyna-Flex--Komatsu 120-ton truck 150,000 65,000 144,000

Based on the three offers above and assuming CarMax uses the straight-line method of depreciation with a salvage value of $2,300 an estimated useful life of 4 years, what is the annual depreciation expense of the exchanged asset that produces the least amount of depreciation expense for CarMax in future years?

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