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Required information [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of
Required information [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 $49,100. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 34,100 units of product. Determine the machine's second-year depreciation and year end book value under the straight-line method. Straight-Line Depreciation Choose Numerator: 1 Choose Denominator: Annual Depreciation Expense Depreciation expense $ 401 = 10 = Cost minus salvage Estimated useful life (years) 4,01011 Year 2 Depreciation $ 4,010 Year end book value (Year 2) etermine the machine's second-year depreciation using the units-of-production method. Units-of-production Depreciation Choose Denominator: Choose Numerator: Annual Depreciation Expense Depreciation expense per unit 0 Depreciation Expense Year Annual Production (units) 2 Determine the machine's second-year depreciation using the double-declining-balance method. Double-declining-balance Depreciation Choose Factors: Choose Factor(%) x Annual Depreciation Expense Depreciation expense II 11 First year's depreciation Second year's depreciation Il
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