Question: ramirez company installs a computerized manufacturing machine in its factory...
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $45,900. The machine's useful life is estimated at 10 years, or 389,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 32,900 units of product.
Determine the machine’s second-year depreciation and year end book value under the straight-line method.