Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $105,300. The machines useful life is estimated at 10 years, or 310,000 units of product, with a $14,900 salvage value. During its second year, the machine produces 29,700 units of product.

Determine the machines second-year depreciation and year end book value under the straight-line method

Straight-Line Depreciation

Choose Numerator:	/	Choose Denominator:				=	Annual Depreciation Expense
	/					=	Depreciation expense
	/					=
Year 2 Depreciation
Year end book value (Year 2)

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $54,000. The machine's useful life is estimated at 10 years, or 420,000 units of product, with a $7,800 salvage value. During its second year, the machine produces 43,000 units of product.

Determine the machines second-year depreciation using the units-of-production method

Units-of-production Depreciation

	Choose Numerator:	/	Choose Denominator:	=	Annual Depreciation Expense
		/		=	Depreciation expense per unit
		/		=
Year	Annual Production (units)		Depreciation Expense
2

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $48,000. The machine's useful life is estimated at 5 years, or 400,000 units of product, with a $8,000 salvage value. During its second year, the machine produces 37,000 units of product.

Determine the machines second-year depreciation using the double-declining-balance method.

Double-declining-balance Depreciation

	Choose Factors:	x	Choose Factor(%)	=	Annual Depreciation Expense
		x		=	Depreciation expense
First year's depreciation		x		=
Second year's depreciation		x		=