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Martinez Corp. purchased a taxicab on January 1, 2016 for $38000 to use for its shuttle business. The cab is expected to have a five-year useful life and no salvage value. During 2017, it retouched the cab’s paint at a cost of $1800, replaced the transmission for $5000 (which extended its life by an additional 2 years), and tuned-up the engine for $200. If Martinez Corp. uses straight-line depreciation, what annual depreciation will Martinez report for 2017?
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