Required information

E$8-4($Algo$)$ Determining Financial Statement Effects of an Asset Acquisition and Depreciation $($Straight$-$

Line Depreciation$)$ L$08-2,8-3$

$[$The following information applies to the questions displayed below.$]$

During Year $1,$ Ashkar Company ordered a machine on January $1$ at an invoice price of $$29,000.$ On the date of delivery,

January $2,$ the company paid $$7,000$ on the machine, with the balance on credit at $11$ percent interest due in six months.

On January $3,$ it paid $$800$ for freight on the machine. On January $5,$ Ashkar paid installation costs relating to the machine

amounting to $$2,400.$ On July $1,$ the company paid the balance due on the machine plus the interest. On December $31($the

end of the accounting period$),$ Ashkar recorded depreciation on the machine using the straight$-$line method with an

estimated useful life of $10$ years and an estimated residual value of $$4,400.$

E$8-4$ Part $3$

Compute the depreciation expense to be reported for Year $1.$