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Required information Use the following information for the Exercises below. [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. Exercise 8-5 Units-of-production depreciation LO P1 Determine the machine's second-year depreciation using the units-of-production method. = = Units-of-production Depreciation Choose Numerator: 1 Choose Denominator: Cost minus salvage Total units of production $ 34,400 404,000 Year Annual Production (units) Depreciation Expense 2 34,000 $ 3,400 Annual Depreciation Expense Depreciation expense per unit $ 0.09