Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of$48,400. The machine's useful life is estimated at 10 years, or 394,000 units of product, with a $9,000 salvage value.During its second year, the machine produces 33,400 units of product.Exercise 8-6 (Algo) Double-declining-balance depreciation LO P1Determine the machine's second-year depreciation using the double-declining-balance method.Double-declining-balance DepreciationAnnual DepreciationExpenseDepreciation expenseChoose Factor(%)Choose Factors:%3D%3DFirst year's depreciationSecond year's depreciation%3D

The double declining balance method of depreciation, also known as the 200% declining balance method…

Answered: $48,400. The machine's useful life is…

$48,400. The machine's useful life is estimated at 10 years, or 394,000 units During its second year, the machine produces 33,400 units of product.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 1AFE

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Question

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of
$48,400. The machine's useful life is estimated at 10 years, or 394,000 units of product, with a $9,000 salvage value.
During its second year, the machine produces 33,400 units of product.
Exercise 8-6 (Algo) Double-declining-balance depreciation LO P1
Determine the machine's second-year depreciation using the double-declining-balance method.
Double-declining-balance Depreciation
Annual Depreciation
Expense
Depreciation expense
Choose Factor(%)
Choose Factors:
%3D
%3D
First year's depreciation
Second year's depreciation
%3D

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