What will be reds depreciation expense for 2018

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Question

Red Corp. constructed a machine at a total cost of $54 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 11-year life using the straight-line method. The residual value is expected to be $3 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?

Reference no: EM132354382

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