Question
Ramirez company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine's useful life
Ramirez company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine's 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.
A. Determine the machine's second year depreciation and year end book value under the straight-line method.
B. Determine the machine's second year depreciation using the units-of-production method.
C. Determine the machine's second-year depreciation using the double-declining-balance method.
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