In your role as a process engineer you are recommending that your company purchase a small robot to automate an essential, but tedious, assembly operation. The robot will cost $40,500 to purchase and it is expected to have a 10 year useful life. In order to program the robot to perform the assembly operation you will need to hire a third party contractor, at a cost of $2,000. Checking the second hand machine market, you see that the estimated salvage value for this robot is likely to be 20% of the initial cost basis. Considering a straight-line depreciation method and compute the depreciation allowance and book value for the 4th year of this project.