Baker Corporation acquired a new machine at a cost of \( \$ 38,000 \), with installation costs of \( \$ 2,000 \). When the machine is retired from service, Baker expects to sell it for scrap metal and receive \( \$ 1,000 \). Regardless of its expected salvage value, the depreciable value of the machine is \( \$ 40,000 \) : \( \$ 38,000 \) cost \( +\$ 2,000 \) installation cost.