Ramez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $46,500. The machine's useful life is estimated at 10 years, or 395,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 35,500 units of product.

Determine the machines second-year depreciation using the units-of-production method.

Units-of-production Depreciation
	Choose Numerator:	/	Choose Denominator:	=	Annual Depreciation Expense
		/		=	Depreciation expense per unit
		/		=	0
Year	Annual Production (units)		Depreciation Expense