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NOTE: correct answer is $9.86. I cannot figure out how to get to this answer. Please show all work. Thank you in advance Red Corp.
NOTE: correct answer is $9.86. I cannot figure out how to get to this answer. Please show all work. Thank you in advance
Red Corp. constructed a machine at a total cost of $64 million. Construction was completed at the end of 2017 and the machine was placed in service at the beginning of 2018. The machine was being depreciated over a 11-year life using the straight-line method. The residual value is expected to be $3 million. At the beginning of 2021, Red decided to change to the sum-of-the-years'-digits method. Ignoring income taxes, what will be Red's depreciation expense for 2021? (Do not round intermediate calculations. Round final answer to 2 decimal places.)Step by Step Solution
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