Part 1 of 4 Utica Associates acquired a machine on January 1 at a cost of $280,900. Utica estimates that the machine has a useful life of 12 years and a $50,500 residual value. Compute the depreciation expense for the first 2 years and determine the net book value at the end of the second year (assume that Utica Associates uses the units-of-output depreciation method). The machine's total output is expected to be 115,200 units. Actual output during Year 1 was 12,500 units. Actual output during Year 2 was 8,900 units. Determine the formula to calculate the depreciation expense by using the units-of-output method. Units-of-output depreciation expense =