During the December 31, 2023 Financial Statement Audit, the company conducted a thorough internal audit, during which the following facts were discovered. The audit occurred before any adjusting entries or closing entries are prepared. (Assume the 2022 books are closed) 1. The Company purchased a machine for $350,000 on January 1, 2020. Lundholm depreciates machines of this type by the straight-line method over a 10-year period using no salvage value. Due to a change in sales patterns, on January 1, 2023, management determines the useful life of the machine to be a total of 12 years, and has a salvage value of $20,000. What amount should Lundholm record for depreciation expense for 2023? 2. The Company purchased machinery on July 1, 2023. The machinery was valued at $3,500,000, with a $350,000 down and the Company agreed to pay the balance in 8 equal installments ($487,374), payable each June 30. The company has a borrowing rate of 5%. There is no salvage value, and the useful