E11-8B (LOI,2) (Depreciation Computation-Replacement, Nonmonetary Exchange) Sachs Corporation bought a machine essential part of the machine is replaced, at a cost of $7,000, with one designed to reduce the cost of operating the machine. The cost of the old part and related depreciation cannot be determined with any accuracy On October 1, 2019, the company buys a new machine of greater capacity for $86,000, delivered, trading in the old machine salvage value of $10,000 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 October 1, 2019