Ramirez Company

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $83,600. the machine's estimated useful life is estimated at 20 years, or 398,000 units, with a $4,000 salvage value. During its first year it produces 32,000 units. During its second year it produces 33,800 units.

Requirements: Provide (a) the necessary December 31 adjusting entry to record depreciation for Year 2 and (b) the asset's book value at the end of Year 2 assuming the following depreciation method is used:

1. Straight-line
2. Units of Production
3. Double-declining balance