2. On January ​1, Alamo Cranes purchased a crane for $ 140,000. Alamo expects the crane to remain useful for six years ​(1,000,000 ​lifts) and to have a residual value of $ 2,000. The company expects the crane to be used for 80 comma 000 lifts the first year.

Compute the​ first-year depreciation expense on the crane using the​ straight-line method. Begin by selecting the formula to calculate the​ company's first-year depreciation on the crane using the​ straight-line method. Then enter the amounts and calculate the depreciation for the first year.