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Required Informetlion 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 $45,300. The machine's useful life is estimated at 10 years, or 403,000 units of product, with a $5,000 salvage value During its second year, the machine produces 34,300 units of product. Determine the machine's second-year depreciation and year end book value under the straight-line method. Annual Depreciation Expense Choose Numerator: Choose Denominator Cost minus salvage Estimated useful life (years) - Depreciation expense 40,300 ar 2 Depreciation Year end book value (Year 2)

Explanation / Answer

Choose Numerator

/

Choose Denominator

=

Annual Depreciation Expense

Cost minus Salvage

/

Estimated Useful Life

=

Depreciation Expense

40300

/

10

=

4030

Year 2 Depreciation

4030

Year end Book Value (Year 2)

37240

Cost of the Asset

45300

Less: Year 1 Depreciation

4030

Less: Year 2 Depreciation

4030

Year end Book Value (Year 2)

37240

Choose Numerator

/

Choose Denominator

=

Annual Depreciation Expense

Cost minus Salvage

/

Estimated Useful Life

=

Depreciation Expense

40300

/

10

=

4030

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