Question

8-Homewok 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 $48,400. The machine's useful life is estimated at 10 years, or 394,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 33,400 units of product Exercise 8-6 Double-declining-balance depreciation LO P1 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 (%) X x First year's depreciation Second year's depreciation

Answer 1

	Book value	x	Depreciation rate	=	Depreciation expense
First	48,400		20%		9680
Second	38,720		20%		7744

Depreciation rate = 200/useful life = 200/10 = 20%

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