Response to the following problem:
Supreme Fitness Club uses straight-line depreciation for a machine costing $21,750, with an estimated four-year life and a $2,250 salvage value. At the beginning of the third year, Supreme determines that the machine has three more years of remaining useful life, after which it will have an estimated $1,800 salvage value.
Compute:
(1) the machine's book value at the end of its second year and
(2) the amount of depreciation for each of the final three years given the revised estimates.