Question

Required information The following information applies to the questions displayed below. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $80.600. The machine's useful life is estimated at 10 years, or 388,000 units of product with a $3,000 salvage value. During its second year, the machine produces 32.800 units of product. Determine the machine's second-year depreciation and year end book value under the straight line method. Straight Line Depreciation Choose Numerator: Choose Denominator:- Annual Depreciation Yew 2 Depreciation Year end book value (Year 2)

Answer 1

Straight-Line Depreciation Choose Numerators I Choose Denominator : = Annual Depreciation Expense Estimated useful Cost minus salvage value / = Depreciation life (years) Expense $ 7,760 10 = $ 77,600 $ 7,760 Year 2 Depreciation year end book value (Year 2) & 65,000 Calculation: Cost - salvage value = $ 80,600 - $ 3,000 = $ 77,600

Year end book value (year 2) = Cost - Deprecation, Expeмe x2 4eak = $ 8o, boo - $ -1, 760 х 2 челъs - + 6S,680