Apply each year's depreciation sequentially to the remaining value.

• Year 1: \(\$85000 \times (1 - 0.15) = \$85000 \times 0.85 = \$72250\)
• Year 2: \(\$72250 \times (1 - 0.20) = \$72250 \times 0.80 = \$57800\)

Final Answer: \(\$57800\)