E$10\mathrm{.}8($LO $1)($Depreciation Computation$-$Replacement, Nonmonetary Exchange$)$ George Zidek Corporation bought a machine on June $1,2023,$ for $$31,000,$ f$.$o$.$b$.$ the place of manufacture. Freight to the point where it was set up was $$200,$ and $$500$ was expended to install it$.$ The machine's useful life was estimated at $10$ years, with a salvage value of $$2,500.$ On June $1,2024,$ an essential part of the machine is replaced, at a cost of $$1,980,$ with one designed to reduce the cost ofi operating the machine. The cost of the old part and related depreciation cannot be determined with any accuracy.

On June $1,2027,$ the company buys a new machine of greater capacity for $$35,000,$ delivered, trading in the old machine which has a fair value and trade$-$in allowance of $$20,000.$ Preparing the old machine for removal from the plant cost $$75,$ and expenditures to install the new one were $$1,500.$ It is estimated that the new machine has a useful life of $10$ years, with a salvage value of $$4,000$ at the end of that time. $($The exchange has commercial substance.$)$

Instructions

Assuming that depreciation is to be computed on the straight$-$line basis, compute the annual depreciation on the new equipment that should be provided for the fiscal year beginning June $1,2027.($Round to the nearest dollar.$)$