required information\nuse the following information for the exercises below. (algo)\nthe following…

required information\nuse the following information for the exercises below. (algo)\nthe following information applies to the questions displayed below.\nramirez company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $83,600. the machines useful life is estimated at 20 years, or 398,000 units of product, with a $4,000 salvage value. during its second year, the machine produces 33,800 units of product.\nexercise 10 - 4 (algo) straight - line depreciation lo p1\ndetermine the machines second - year depreciation and year end book value under the straight - line method.\nstraight - line depreciation\n|choose numerator|/|choose denominator|=|answer|\n|----|----|----|----|----|\n|/|/|=|depreciation expense|\n|/|/|=|0|\nyear 2 depreciation|$|3,980|\nyear end book value (year 2)|$|75,640|

required information\nuse the following information for the exercises below. (algo)\nthe following information applies to the questions displayed below.\nramirez company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $83,600. the machines useful life is estimated at 20 years, or 398,000 units of product, with a $4,000 salvage value. during its second year, the machine produces 33,800 units of product.\nexercise 10 - 4 (algo) straight - line depreciation lo p1\ndetermine the machines second - year depreciation and year end book value under the straight - line method.\nstraight - line depreciation\n|choose numerator|/|choose denominator|=|answer|\n|----|----|----|----|----|\n|/|/|=|depreciation expense|\n|/|/|=|0|\nyear 2 depreciation|$|3,980|\nyear end book value (year 2)|$|75,640|

Answer

Explanation:

Step1: Calculate depreciable cost

Depreciable cost = Cost - Salvage value. So, $83600 - 4000=$79600$.

Step2: Calculate annual depreciation

Annual depreciation = $\frac{\text{Depreciable cost}}{\text{Useful - life in years}}$. So, $\frac{79600}{20}=$3980$. In straight - line method, annual depreciation is the same each year, so second - year depreciation is also $$3980$.

Step3: Calculate year - end book value

Book value at the end of year 2 = Cost-(Annual depreciation×Number of years). So, $83600-(3980\times2)=83600 - 7960=$75640$.

Answer:

Year 2 Depreciation: $$3980$ Year end book value (Year 2): $$75640$