Business, 01.08.2019 02:30 gabbysanchez5976

Ramirez company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $85,400. the machine's useful life is estimated at 20 years, or 402,000 units of product, with a $5,000 salvage value. during its second year, the machine produces 34,200 units of product. determine the machine’s second-year depreciation and year end book value under the straight-line method.

Answers: 2

Show answers

Answers

Answer from: SmokeyRN

The machine’s second-year depreciation and year end book value under the straight-line method is $4020 and $77,360 respectively.

The straight line depreciation method is used by companies to calculate amortization and depreciation. It is good method to determine the loss of value of an asset over a given period.

Further Explanation

You can calculate straight line depreciation by subtracting assets cost from expected salvage value and then divide the derived value by the expected number of years to be used.

This can be expressed as:

Initial cost – salvage value / useful life

From the given question,

Initial cost = $85,400 Salvage value = $5000 Useful life = 20

If you substitute the values into the equation, then you have:

$85,400 - $5000 / 20

= $80400 / 20

= $4020

To determine the book value for the second year, then you should subtract the initial value from the derived value when you multiply the years (2) and the depreciation.

This can be expressed as:

Book value = Initial value - (years x depreciation)

= $85,400 - (2 x $4020)

= $77,360

Thus, the machine’s second-year depreciation and year end book value under the straight-line method is $4020 and $77,360 respectively.

LEARN MORE:

Sarita Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $67,000 linkRamirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $85,400. link

KEYWORDS:

ramirez companysalvage valuesecond - year depreciation yearstraight line methodbook valueuseful life

Answer from: Quest

how does that happen,where u steel points

Answer from: Quest

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

Another question on Business

Business, 22.06.2019 11:30

Chuck, a single taxpayer, earns $80,750 in taxable income and $30,750 in interest from an investment in city of heflin bonds. (use the u.s. tax rate schedule.) (do not round intermediate calculations. round your answers to 2 decimal places.)

Answers: 2

Answer

Business, 22.06.2019 14:30

In our daily interactions we can find ourselves listening to other people solely for the purpose of finding weakness in their positions so that we can formulate a convincing response. select one: true false

Answers: 1

Answer

Business, 22.06.2019 15:00

(a) what do you think will happen if the price of non-gm crops continues to rise? why? (b) what will happen if the price of non-gm food drops? why?

Answers: 2

Answer

Business, 22.06.2019 18:50

Retirement investment advisors, inc., has just offered you an annual interest rate of 4.4 percent until you retire in 40 years. you believe that interest rates will increase over the next year and you would be offered 5 percent per year one year from today. if you plan to deposit $13,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?

Answers: 3

Answer

You know the right answer?

Ramirez company installs a computerized manufacturing machine in its factory at the beginning of the...

Questions