Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $86,200. The machine's useful life is estimated at 10 years, or 396,000 units of product, with a $7000 salvage value. During its second year, the machine produces 33,600 units of product.

Determine the machine's second year depreciation and year end book value under the straight-line method.

Required information Use the following information for the Exercises below. (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 $86,200. The machine's useful life is estimated at 10 years, or 396,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 33,600 units of product Exercise 8-4 Straight-line depreciation LO P1 Determine the machine's 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)