Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at

Question:

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $ 43,500. The machine’s useful life is estimated at 10 years, or 385,000 units of product, with a $ 5,000 . During its second year, the machine produces 32,500 units of product. Determine the machine’s second- year depreciation under the straight- line method.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...