Compute the machines second-year depreciation

Reference no: EM131969139

Problem

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $87,000. The machine's useful life is estimated at 20 years, or 395,000 units of product, with a $8,000 salvage value. During its second year, the machine produces 33,500 units of product. Determine the machine's second-year depreciation and year end book value under the straight-line method.

Reference no: EM131969139

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