Mountain View Corporation purchased a machine with an initial cost of $90,000, a residual value of $5,000, and an estimated useful life of 10 years. At the beginning of the fifth year, Mountain View Corporation spent $12,000 for an extraordinary repair (betterment). Following the betterment, Mountain View estimated that the machine had a remaining useful life of 8 years, and that the residual value was unchanged. Calculate depreciation expense on the machine for the fifth year, assuming they use the straight-line method.
e. None of the above
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