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On July 1 , 2 0 1 8 , Matador purchased a machine for $ 2 0 0 , 0 0 0 with a salvage

On July 1,2018, Matador purchased a machine for $200,000 with a salvage value of $8,000 and useful life of 20 years which was depreciated using the straight-line method. On July 1,2022, Matador decided to change the salvage to $14,255 and a total useful life of 28 years. The bookkeeper used the old estimates in calculating ICO. Determine the adjustment to ICO. Matador has a corporate tax rate of 30%.
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