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.