On January 1, 20X1, Cameron Company purchased a sophisticated piece of equipment costing $300,000. The equipment had a $30,000 salvage value and a 10-year estimated useful life. As of January 1, 20X4, technology has changed, and it is feared that the value of this sophisticated piece of equipment has beenimpaired. On January 1, 20X4, it is projected that the equipment has a remaining useful life of 4 years, a salvage value of $20,000, and that it will generate cash flows of $45,000 at the end of each year for the next 4 years (in additionto the cash flow from the salvage value which will occur at the end of 4 years). The market interest rate is 10%. How muchDEPRECIATION EXPENSEwill Cameron Company recognize on this piece of equipment during the year 20X4? Note:Impairmentlosses arenotclassified as part of depreciation expense. Cameron uses straight-line depreciation.

8.