Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500. The machine's useful life is estimated at 10 years, or 405,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 34,500 units of product. Exercise 8-4 Straight-line depreciation LO P1 Determine the machine's second-year depreciation and year end book value under the straight-line method. Straight-Line Depreciation Choose Numerator: / Choose Denominator: II = Annual Depreciation Expense Beginning book value / Estimated useful life (years) = Depreciation expense $ 38,000 / 10 = $ 3,800 Year 2 Depreciation $ 7,600 Year end book value (Year 2) 39,900