M8-6 (Algo) Computing Book Value (Units-of-Production Depreciation) LO8-3 A three-year-old machine has a cost of $19,300, an estimated residual value of $1,800, and an estimated useful life of 35,000 machine hours. The company uses units-of-production depreciation and ran the machine 4,900 hours in year 1; 6,550 hours in year 2; and 6,500 hours in year 3. Calculate the net book value at the end of the third year.