Question

I am so confused know I need to subtract the 43500 from 5000 which gives me about 38000 then divide but the great idk

Use the Tollowing intormation 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 $13,500. 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. Exercise 8-4 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: Choose Denominator: - Annual Depreciation Expense Beginning book value Depreciation expense 43 500 Year 2 Depreciation Year end book value (Year 2) < Prey 5 6 of 12 !! Next > o e d oo to search

Answer 1

Numerator	Denominator	Annual depreciation expense
Cost minus salvage	/Useful life	Depreciation expense
(43,500 - 5,000)	/10	$3,850
Second year depreciation	$3,850
Year end book value (year 2)	43,500 - 3,850 - 3,850 = $35,800

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