### Compute depreciation expense for the fourth year

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##### Reference no: EM13260230

Consider the following data for Kathleen's Tropical Resorts, Inc.

 Cost of machine \$ 1,000,000 Estimated useful life (years) 8 years Salvage value \$ 40,000 Estimated useful life (units) 1,800,000 Units produced during the first year 160,000

Assume Kathleen's computed depreciation expense of \$140,000 per year. After three years, Kathleen's determined that the machine would last eight more years (for a total of 11 years). Compute depreciation expense for the fourth year.

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