The dauten toy corporation uses an injection molding machine that was purchased 2 year ago.
This machine is being depreciated on a straight-line basis,and it has 6 years of remaining life.
Its current book value is $2,100,and it can be sold for $2,500 at this time.
Thus,the annual depreciation expense is$2,100/6=$350 per year.
If the old machine is not replaced, it can be sold for $500 at the end of its useful life.