Carlos Company purchased a machine on January 1, 2005, for $1,200,000. At the date of acquisition, the machine had an estimated useful life of eight years with no residual value. The machine is being depreciated on a straight-line basis. On January 1, 2008, Carlos determined, as a result of additional information, that the machine had an estimated useful life of 10 years from the date of acquisition with no residual value.
What is the amount of depreciation expense on the machine that should be charged to Carlos Company’s income statement for the year ended December 31, 2008?