Gamma purchased a machine for $350 on January 1, 2012. It assumed the machine would be functional for five years with a salvage value of $100. At the beginning of 2015, Gamma estimates that there are five years of useful life remaining for the machine and a salvage value of $40. The company uses straight-line depreciation.

1) What is the book value of the machine when it make the changes?

2)What amount of depreciation should Gamma record in 2015?