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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 399,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 33,900 units of product.
Problem 1: Determine the machine's second-year depreciation and year end book value under the straight-line method.
Problem 2: Determine the machine's second-year depreciation using the units-of-production method.
Problem 3: Determine the machine's second-year depreciation using the double-declining-balance method.
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