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Orange Corp. constructed a machine at a total cost of $74 million. Construction was completed at the end of 2017 and the machine was placed
Orange Corp. constructed a machine at a total cost of $74 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 8-year life using the sum-of-the-years'-digits method. The residual value is expected to be $5 million. At the beginning of 2021, Orange decided to change to the straight-line method. Ignoring income taxes, what will be Orange's depreciation expense for 2021? (Do not round your intermediate calculation and round final answer to 1 decimal place.) Multiple Choice $11.8 million. O $5.8 million $8.6 million $6.8 million
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