KADS, Incorporated has spent $490,000 on research to develop a new computer game. The firm is planning to spend $290,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated using bonus depreciated; they total $59,000. The machine has an expected life of three years, a $84,000 estimated resale value, and falls under the MACRS seven-year class life. Revenue from the new game is expected to be $690,000 per year