1. **State the problem:** We need to find the depreciation expense for year 2 of a machine purchased for $57,000 plus $8,000 installation, using the diminishing value method at a rate of 8.9%. 2. **Calculate the initial cost:** The total cost of the machine is $57,000 + $8,000 = $65,000. 3. **Formula for diminishing value depreciation:** $$\text{Depreciation for year } n = \text{Book value at start of year } n \times \text{Depreciation rate}$$ 4. **Calculate depreciation for year 1:** $$\text{Depreciation}_1 = 65,000 \times 0.089 = 5,785$$ 5. **Calculate book value at start of year 2:** $$\text{Book value}_2 = 65,000 - 5,785 = 59,215$$ 6. **Calculate depreciation for year 2:** $$\text{Depreciation}_2 = 59,215 \times 0.089 = 5,269.135$$ 7. **Final answer:** The depreciation in year 2 is approximately $5,269.14.