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On August 1, Warren Company placed into service equipment with a capitalized cost of $43,986. The equipment was paid for by issuing a 90 day 6% Note Payable. Based on industry standards, the equipment is expected to have a useful life of 7 years, at which time it will have an estimated worth of $4,296. The equipment will be depreciated using the Straight Line method.
Question 1: Based on these transactions alone, what is the Depreciation Expense on the equipment on August 31?
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