Lundholm Company purchased a machine for $101,700 on January 1, 2016. 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, 2018, management determines the useful life of the machine to be a total of five years. What amount should Lundholm record for depreciation expense for 2018? The tax rate is 30%. (Do not round your intermediate calculation.)

Multiple Choice

• $18,306.

• $18,984.

• $20,340.

• $27,120.