Orange corp constructed a machine at a total cost of 72


Orange Corp. constructed a machine at a total cost of $72 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 sum-of-the-years'-digits method. The residual value is expected to be $4 million. At the beginning of 2016, Orange decided to change to the straight-line method. Ignoring income taxes, what will be Orange's depreciation expense for 2016? (Do not round your intermediate calculation and round final answer to 1 decimal place.)

$10.0 million.

$5.3 million.

$7.6 million.

$6.0 million.

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: Orange corp constructed a machine at a total cost of 72
Reference No:- TGS01669544

Expected delivery within 24 Hours