Crane Company purchased a new machine on October 1, 2017, at a cost of $89,920. The company estimated that the machine has a salvage value of $9,440. The machine is expected to be used for 71,300 working hours during its 8-year life. Compute the depreciation expense under the straight-line method for 2017 and 2018, assuming a December 31 year-end.

The depreciation expense under the straight-line method

2017 2018