ABC purchased a machine that has an estimated useful life of 6 years for $4834 The machine's salvage value is estimated to be $468 ABC uses the straight-line depreciation method The depreciation for the second year of the machine's life is: Answer: 427.67 On December 31, year O, ABC purchased a machine in exchange for an interest-bearing note requiring 7 payments of $287457 at the end of each year. The first payment was made on December 31, year 1. At the date of the transaction, the prevailing rate of interest for this type of note was 5.2%. The initial value of the machine is: Answer: 1651440