Straight line method question?

Tim bought a machine for $86,000 with residual value of $6,000. The estimated life is 10 years. Using the straight line method, what is the book value of the machine at the end of year two?

I don't know how to figure the book value at the end of year two. The first year is $78,000.

Og2015-05-05T17:02:26Z

86k - 6k = 80k --> 80k / 10 years = 8k dep'r per year.
Year 1 = 86k - 8k = 78k
Year 2 = 78k - 8k = 70k

10

hotstuffktr2015-05-05T16:36:03Z

So, year two is $70,000.

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