M8-6 (Algo) Computing Book Value (Units-of-Production Depreciation) LO8-3 A three-year-old machine has a cost of $17,500, an estimated residual value of $2,000, and an estimated useful life of 31,000 machine hours. The company uses units-of-production depreciation and ran the machine 4,500 hours in year 1; 7,950 hours in year 2; and 7,000 hours in year 3. Calculate the net book value at the end of the third year. Net book value