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Miller Company acquired a machine for $420,000 on June
30, year 2. The machine has a seven-year life, no salvage value,
and was depreciated using the straight-line method. On August
31, year 4, a test for recoverability reveals that the expected net
future undiscounted cash inflows related to the continued use and
eventual disposal of the machine total $275,000. The machine’s
actual fair value on August 31, year 4, is $261,000. Assuming a
loss on impairment is recognized August 31, year 4, what is Miller’s
depreciation expense for September year 4?