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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
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 $49,000. The machine's useful life is estimated at 10 years, or 400,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 34,000 units of product.
Determine the machines second-year depreciation and year end book value under the straight-line method.
Straight-Line Depreciation Choose Numerator: Annual Depreciation Expense Choose Denominator: Depreciation expense Year 2 Depreciation Year end book value (Year 2) Determine the machine's second-year depreciation using the units-of-production method. Units-of-production Depreciation Choose Numerator: Choose Denominator: Annual Depreciation Expense Depreciation expense per unit Year Annual Production (units) Depreciation Expense 2 Determine the machine's second-year depreciation using the double-declining-balance method Double-declining-balance Depreciation Annual Depreciation Expense Depreciation expense Choose Factors: Choose Factor(%) First year's depreciation Second year's depreciationStep by Step Solution
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