Question

Check my work 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 $43,500. The machine's useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 32,500 units of product. Determine the machine's second-year depreciation using the double-declining-balance method. = Double-declining-balance Depreciation Choose Factors: Choose Factor (%) Beginning book value x Double the straight-line rate S 43,500 x 20% L 2 0% Annual Depreciation Expense Depreciation expense $ $ 0 First year's depreciation Second year's depreciation = = < Prev 6 of 10 # Next > 1900 1888 ? AWX ?RO

Answer 1

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 8700 6960 First Year's Depreciation Second Year's depreciation Beginning Book Value 43500 34800 Double the Straight line rate 20% 20%

Book Value in Second year = 43,500-8700= 34,800