Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $85,400. The machine's useful life is estimated at 20 years, or 402,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 34,200 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
	Cost minus salvageselected answer correct	/		=	Depreciation expense per unit
	$80,400selected answer correct	/
Year	Annual Production (units)		Depreciation Expense
2