Question
Orange Corp. constructed a machine at a total cost of $54 million. Construction was completed at the end of 2014 and the machine was placed
Orange Corp. constructed a machine at a total cost of $54 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 11-year life using the sum-of-the-years'-digits method. The residual value is expected to be $3 million. At the beginning of 2018, Orange decided to change to the straight-line method. Ignoring income taxes, what will be Orange's depreciation expense for 2018? (Do not round your intermediate calculation and round final answer to 1 decimal place.)
Multiple Choice
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$3.9 million.
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$4.6 million.
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$3.5 million.
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$6.8 million.
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