M8-6 (Algo) Computing Book Value (Units-of-Production Depreciation) LO8-3

A three-year-old machine has a cost of $47,900, an estimated residual value of $2,400, and an estimated useful life of 35,000 machine hours. The company uses units-of-production depreciation and ran the machine 4,200 hours in year 1; 6,150 hours in year 2; and 7,100 hours in year 3.

Calculate the net book value at the end of the third year.