Avatar,Inc.bought a machine on January 1,2011 for $96,000.The machine is expected to last for 8 years,after which it will be worthless.How much accumulated depreciation will Avatar report at December 31,2011?

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In the first year of the machine's use, Avatar can depreciate it for one full year. Using straight-line depreciation, the annual depreciation expense would be $12,000 ($96,000 ÷ 8 years). Therefore, at December 31, 2011, Avatar would have accumulated $12,000 of depreciation expense.