What will be Tangerine depreciation expense

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Question - Tangerine Corp. constructed a machine at a total cost of $272 million. Construction was completed at the end of 2017 and the machine was placed in service at the beginning of 2018. The machine was being depreciated over a 10-year life using the sum-of-the-years'-digits method. By that method, accumulated depreciation at the end of 2020 is $129.6 million. The residual value is expected to be $8.0 million. At the beginning of 2021, Tangerine decided to change to the straight-line method. Ignoring income taxes, what will be Tangerine's depreciation expense for 2021?

a) $19.2 million.

b) $21.6 million.

c) $7.1 million.

d) $35.6 million.

Reference no: EM133077078

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