Problem
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $46,800. The machine's useful life is estimated at 10 years, or 260,000 units of product, with a $6,600 salvage value. During its second year, the machine produces 24,700 units of product. Determine the machine's second-year depreciation and year end book value under the straight-line method.