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 machine's second-year depreciation and year end book value under the straight-line method. Straight-Line Depreciation Choose Numerator: / Choose Denominator: Annual Depreciation Expense Cost minus salvage Estimated useful life (years) = Depreciation expense $ 80,400 / 20 = $ 4,020 Year 2 Depreciation Year end book value (Year 2)