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 $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 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
$80,800	/	20	=	$4,040
Year 2 Depreciation
Year end book value

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