Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $ 80,600. The machines useful life is estimated at 10 years, or 388,00 units of product, with a $ 3000 salvage value. During its second year, the machine produces 32, 800 units of product

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

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Year 2

Annual production units

Depreciation Expense

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

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First years depreciation

Second years depreciation