Decided to change to the straight-line method

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Reference no: EM131266743

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.

Reference no: EM131266743

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