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 $86,800. The machine's useful life is estimated at 20 years, or 404,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 34,400 units of product.

Exercise 10-4 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 Cost minus salvage Depreciation expense Estimated useful life (years) 86,8001 404,000 $ $ 0 Year 2 Depreciation Year end book value (Year 2) Exercise 10-6 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 Beginning book value x (Double the straight-line rate First year's depreciation Second year's depreciation X X X