Sum-of-the-Years' Digits 1. On January 1, Year 1, Graham Company purchased a new machine for $20,300,000. The new machine has an estimated useful life of nine years and the salvage value was estimated to be $725,000. Depreciation was computed on the sum-of-the-years'-digits method. What amount should be shown in Graham's balance sheet at December 31, Year 1, net of accumulated depreciation, for this machine