Required information

Use the following information for the Exercises below. (Algo)

[The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $87,000. The machine's useful life is estimated at 20 years, or 395,000 units of product, with a $8,000 salvage value. During its second year, the machine produces 33,500 units of product.

Exercise 8-4 (Algo) Straight-line depreciation LO P1

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