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1) Choose one: Choose Numerator : - Beginning book value, -Cost , - Cost minus salvage Choose Denominator: - Double the SL rate, - Estimated

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Choose one:

Choose Numerator : - Beginning book value, -Cost , - Cost minus salvage

Choose Denominator: - Double the SL rate, - Estimated used life( years), - Total units of production

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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 $43,500. The machine's useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 32,500 units of product. Determine the machine's second-year depreciation using the units-of-production method. Units-of-production Depreciation Choose Denominator: Choose Numerator: Annual Depreciation Expense Depreciation expense per unit 0 / Depreciation Expense Year Annual Production (units) 2 A machine costing $214,000 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 495,000 units of product during its life. It actually produces the following units: 122,100 in 1st year, 123,100 in 2nd year, 121,300 in 3rd year, 138,500 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimatethis difference was not predicted. (The machine must not be depreciated below its estimated salvage value.) Required: Compute depreciation for each year and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. Straight Line Units of Production DDB Compute depreciation for each year (and total depreciation of all years combined) for the machine under each Double- declining-balance. End of Period Year DDB Depreciation for the Period Beginning of Period Book Depreciation Depreciation Rate Expense Value % Accumulated Depreciation Book Value 1 $ 0 2 3 % % % 0 0 0 4 $ 0

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