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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
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 $81,400. The machine's useful life is estimated at 20 years, or 387,000 units of product, with a $4,000 salvage value. During its second year, the machine produces 32,700 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: 1 Choose Denominator: Annual Depreciation Expense = Depreciation expense 0 Year 2 Depreciation Year end book value (Year 2) Determine the machine's second-year depreciation using the units-of-production method. Choose Numerator: Units-of-production Depreciation Choose Denominator: Annual Depreciation Expense = Depreciation expense per unit Year Annual Production (units) 2 Depreciation Expense 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 First year's depreciation Second year's depreciation
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