question archive Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $83,600
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $83,600
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Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $83,600. The machine's useful life is estimated at 20 years, or 398,000 units of product, with a $4,000 salvage value. During its second year, the machine produces 33,800 units of product. Determine the machine's second-year depreciation and year end book value under the straight-line method.
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Answer:
Second year depreciation- 3,980
second year book value - 75,640
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