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Lundholm Company purchased a machine for $106,900 on January 1, 2016. Lundholm depreciates machines of this type by the straight-line method over a 10-year period
Lundholm Company purchased a machine for $106,900 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 40%.
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