Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $70,000. The machine's useful life is estimated at 10 years, or 440,000 units of product, with a $8,400 salvage value. During its second year, the machine produces 59,000 units of product.

Determine the machine’s second-year depreciation using the double-declining-balance method.

  

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $70,000. The machine's useful life is estimated at 10 years, or 440,000 units of product, with a $8,400 salvage value. During its second year, the machine produces 59,000 units of product. Determine the machine's second-year depreciation using the double-declining-balance method. First year's depreciation Second year's depreciation Double-declining-balance Depreciation Choose Factor (%) Choose Factors: X X Beginning book value Cost Cost minus salvage = = 11 11 Annual Depreciation Expense Depreciation expense