Problem
Red Corp. constructed a machine at a total cost of $68 million. Construction was completed at the end of 2012 and the machine was placed in service at the beginning of 2013. The machine was being depreciated over a 9-year life using the straight-line method. The residual value is expected to be $4 million. At the beginning of 2016, Red decided to change to the sum-of-the-years'-digits method. Ignoring income taxes, what will be Red's depreciation expense for 2016?