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Saved Help Save & Required information 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 $49,100. The machine's useful life is estimated at 10 years, or 401,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 34,100 units of product. 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 Depreciation expense Cost = $ 8,020 Year 2 Depreciation Year end book value (Year 2)

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Naming covention is not available, can be slightly different: Solution: Straight-Line Depreciation Choose Denominator Choose Numerator Annual Depreciation Expense Depreciation Expense $ 4,010 Useful life (in years) 10 Depreciable value: (Cost - residual value) $ 40,100 Year 2 Depreciation Year end book value (year 2) $ $ 4,010 41,080 (49100-8020) Choose Numerator Unit of production Depreciation Choose Denominator Annual Depreciation Expense Dep Expense per unit $ 0.10 (Cost - residual value) $ 40,100 Year Annual production Estimated units of production 401000 Depreciation expense $ 3,410 (34100*0.10) 21 34100 Double-declining-balance Depreciation Choose factors: X Choose factor (%) = | Annual Depreciation Carrying value 20% Depreciation Expense $ 49,100 х 20% $ 9,820 $ 39,280 20% $ 7,856 First year's Depreciation Second year's Depreciation