Question

Check 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 $45,900. The machine's useful life is estimated at 10 years, or 399,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 33,900 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 Depreciation expense Year 2 Depreciation Year end book value (Year 2)

the 3 questions are connected

Answer 1

Cost of the Machine 45900 Salvage Value 6000 Depreciable value of the Machine 39900 Satraightline Method Choose Numerator : Choose Denominator Cost minus Salvage Estimated Useful life (Years) 39900 10 Year 2 Depreciation 3990 2 Year End book Value (Year 2) 37920 Annual Depreciation Expenses Depreciation Expenses 3990 Year (45900-(3990*2)

Cost of the Machine Salvage Value Depreciable value of the Machine Units of Production 45900 6000 39900 Choose Numerator : Choose Denominator Annual Depreciation Expenses Depreciation Expenses Per unit 0.10 Cost minus Salvage 39900 Annual Depreciation in units 33900 Total Units of Prodcution 399000 Depreciation Expense 3390 Year

Double Declining balance Method Rate of Depreciation = (1/ Life)*2 Depreciation Rate = (1/10)*2 Cost of the Machine 20% 43500 Double Declining balance Depreciation Choose Facors: Choose Factor (%) Annual Depreciation Expenses Depreciation Expenses Per unit 9180 7344 Beginning Book Value First Year's Depreciation 45900 Second Year's depreciation 36720 Double the Straight line rate 20% 20%