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    tld76's Avatar
    tld76 Posts: 1, Reputation: 1
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    #1

    Apr 20, 2014, 10:37 AM
    Straight line depreciation
    Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $114,200. The machine’s useful life is estimated at 10 years, or 332,000 units of product, with a $16,200 salvage value. During its second year, the machine produces 31,900 units of product.

    Determine the machine’s second-year depreciation and year end book value under the straight-line method.
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #2

    Apr 20, 2014, 01:19 PM
    So what have you determined? We don't do your homework.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    Apr 21, 2014, 07:31 AM
    For straight line depreciation simply take your cost minus the salvage value to get your depreciable base, Then divide the depreciable base by the number of your years to get your depreciation amount per year. In straight line depreciation the amount of depreciation per year will be the same amount, hence straight line depreciation.

    The other information provided would be used for units-of-production depreciation method.
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