Question

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 $81,400. The machine's useful life is estimated at 20 years, or 387,000 units of product, with a $4,000 salvage value. During its second year, the machine produces 32,700 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 x Choose Factor (%) Choose Factors: Beginning book value $ 81,400 = - = Annual Depreciation Expense Depreciation expense x Double the straight-line rate First year's depreciation Second year's depreciation

Answer 1

Amswer:- Given date, lost = $ 81,400 salleage value = $ 4000 useful life of = 20 years. I xloo veful life Depreciation rate os per strought line melhodo IXLOO 20 = 544 Rate of double declining balance rate = 2x5% = 101. Annual x depreciation rule a depregation X 101 = $8140 X 10%. = $7326 Beginning book valcu First year depreciation = $81,400 second year depreciation = $ 73260 (81400-8140) $ 7-326 .: second year depreciation =