At the beginning of the year, Palermo Brothers, Incorporated, purchased a new plastic water bottle-making machine at a cost of $45,000. The estimated residual value was $5,000. Assume that the estimated useful life was four years and the estimated productive life of the machine was 400,000 units. Actual annual production was as follows: Year Units 1 120,000 2 90,000 3 110,000 4 80,000