Required information Use the following information for the Exercises below. The

Question

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 $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. 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. Answer is not complete. Straight-Line Depreciation Annual Depreciation Expense Choose Numerator: Choose Denominator: Cost minus salvage Estimated useful life (years) Depreciation ense Year 2 Depreciation Year end book value (Year 2)

Explanation / Answer

Straight Line Depreciation

cost minus salvage value/estimated useful life = Depreciation expenses

43500-5000/10 years = 3850

year 2 depreciation = 3850

year end book value year 2 = $35800

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.