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Cost muinus Salvage

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Estimated Useful life( years)

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Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of S44,000. The machine's useful life is estimated at 10 years, or 355,000 units of product, with a S4.950 salvage value. During its second year the machine produces 33.000 units of product. Determine the machine's second-year depreciation using the units-of-production method. Units of oduction De reciation Choose Denominator Choose Numerator: Annual De ciation Expense Depreciation expense per unit Year Annual Production (units) Depreciation Expense