Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $86,800. The machine's useful life is estimated at 20 years, or 404,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 34,400 units of product.

Determine the machines second-year depreciation and year end book value under the straight-line method.

Straight-Line Depreciation
Choose Numerator:	/	Choose Denominator:	=	Annual Depreciation Expense
	/		=	Depreciation expense
	/		=
Year 2 Depreciation
Year end book value (Year 2)