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On July 1, Year 1, Caribou Company purchased a machine for a cost of $150,000. The machine was determined to have an 8-year useful life
On July 1, Year 1, Caribou Company purchased a machine for a cost of $150,000. The machine was determined to have an 8-year useful life with an expected $10,000 salvage value. Depreciation is done on a double-declining balance basis. During Year 4, Caribou revised its estimate. It now expects the useful life to be 10 years from the original purchase, but with a $20,000 salvage value. How much depreciation expense would Caribou record for this machine for the year ending December 31, Year 4 (round to the nearest whole number)?
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