Question
7. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machines useful
7. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machines 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.
Required:Determine the machines second-year depreciation under the:
-
straight-line
-
units-of-production
Assume that the machine was installed on March 1 of the current year.
Using the straight-line method of depreciation, what would the first year depreciation expense be?
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