Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $80,600. The machine's useful life is estimated at 10 years, or 388,000 units of product, with a $3,000 salvage value. During its second year, the machine produces 32,800 units of product.

Exercise 8-5 Units-of-production depreciation LO P1

Determine the machine's second-year depreciation using the units-of-production method.