Exercise 10-7 Units-of-production depreciation LO P1 Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $49,500. The machine's useful life is estimated at 5 years, or 405,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 38,500 units of product. Determine the machines second-year depreciation using the units-of-production method.