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Gotham Company purchased a new machine on October 1, 2017, at a cost of $90,000. The company estimated that the machine has a salvage value of $8,000. The machine is expected to be used for 70,000 working hours during its 8-year life.
Instructions
Compute the depreciation expense under the straight-line method for 2017 and 2018, assuming a December 31 year-end.
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