Martin Company purchases a machine at the beginning of the year at a cost of $74,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 4 years with a $7000 salvage value. Depreciation expense in year 4 is:
A. $18,500.
B. $67,000.
C. $0.
D. $74,000.
E. $16,750.
Answer: E
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