CVN corp purchases a new machine . The machine costs 10000. They incur another 1000 to bolt the machine into the floor and connect it to their electrical system . The machine will last for 8 years but CVN plans to use it for 4 years and then upgrade to a more efficient item (energy standards continue to get better for these machines ) . At the end of the 4 years , CVN believes they will be able to sell the item for 3000 . CNN uses straight line depreciation for all items .

How much depreciations should they recognize in the first year?