Lundholm Company purchased a machine for $108,600 on January 1, 2019. 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, 2021, management determines the useful life of the machine to be a total of five years. What amount should Lundholm record for depreciation expense for 2021? The tax rate is 25%.

Multiple Choice

• $26,245
• $57,920
• $28,960.
• $3,620.