Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $62,000. The machine's useful life is estimated at 5 years, or 450,000 units of product, with a $12,500 salvage value. During its second year, the machine produces 76,000 units of product.

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

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