Question
Red Corp. constructed a machine at a total cost of $78 million. Construction was completed at the end of 2014 and the machine was placed
Red Corp. constructed a machine at a total cost of $78 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 7-year life using the straight-line method. The residual value is expected to be $6 million. At the beginning of 2018, Red decided to change to the sum-of-the-years'-digits method. Ignoring income taxes, what will be Red's depreciation expense for 2018? (Do not round intermediate calculations. Round final answer to 2 decimal places.)
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