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On January 2 2018, Motors Inc. purchased an engine with a cost of $165,000. At the time, it was expected to last 8 years, with

On January 2 2018, Motors Inc. purchased an engine with a cost of $165,000. At the time, it was expected to last 8 years, with a residual value of $5,000. Two years later, on January 2, 2020 a new part was added to the engine, to increase its productivity. The new part has a cost of $25,000. Motors Inc. revised their estimates to extend the expected useful life of the engine to 12 years, and changed the estimated residual value to $2,000. The revised amortization expense starting January 2020, would be:

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