Q: Compute the carrying amount of the machine at the end of 2020.

Changes in Depreciation Estimates and Capitalization of Expenditures Ironic Metal Products, Inc., acquired a machine on January 2, 2017, for $76,600. The useful life of the machine was estimated to be eight years with a salvage value of $4,600. Depreciation is recorded on December 31 of each year using the double-declining-balance method. At the beginning of 2019, the company estimated the remaining useful life of the machine to be four years and changed the estimated salvage value from $4,600 to $2,600. On January 2, 2020, major repairs on the machine cost the company $34,000. The repairs added two years to the machine's useful life and increased the salvage value to $3,000