Q2 Alladin Company purchased Machine #201 on May 1, 2020. The following information relating to Machine #201 was gathered at the end of May.

Price

$1,806,000

Freight-in costs

$78,000

Prep and installation costs

$18,000

Labor costs during regular production operations

$504,100

Alladin intends to use the machine only

12

years, however,

after which it expects to be able to sell it for

$29,400

The invoice for Machine #201 was paid

May 1, 2020. Alladin uses the calendar year as the basis for the preparation of financial statements.

Instructions:

(2) Compute the depreciation expense for the years indicated using the sum-of-years'-digits method for 2021. (Round to the nearest dollar.)