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 $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. 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 Cost minus salvage / Estimated useful life (years) = Depreciation expense 0 Year 2 Depreciation Year end book value (Year 2) Exercise 8-5 Units-of-production depreciation LO P1 Determine the machine's second-year depreciation using the units-of-production method. Units-of-production Depreciation 1 Choose Denominator: Choose Numerator: Annual Depreciation Expense Depreciation expense per unit Cost minus salvage I Total units of production = 0 Year Annual Production (units) Depreciation Expense 2 Exercise 8-6 Double-declining-balance depreciation LO P1 Determine the machine's second-year depreciation using the double-declining-balance method. Double-declining-balance Depreciation Choose Factors: Choose Factor(%) = Annual Depreciation Expense Depreciation expense $ 0 II First year's depreciation Second year's depreciation X II $ 0