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On January 1,2001,VS Purchased a Machine That Cost $50,000; the Estimated

Question 139

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On January 1,2001,VS purchased a machine that cost $50,000; the estimated residual value was $4,640.At December 31,2001,the following data are available (end of the accounting period):  Estimated Life  Utilization During 20016 years 1 year 216,000 service hours 20,000 service hours 100,000 units of  product 15,000 units \begin{array}{|l|l|}\hline \text { Estimated Life } & \text { Utilization During } 2001 \\\hline 6 \text { years } & 1 \text { year } \\\hline 216,000 \text { service hours } & 20,000 \text { service hours } \\\hline \begin{array}{l}100,000 \text { units of } \\\text { product }\end{array} & 15,000 \text { units } \\\hline\end{array} Give the 2001 amortization expense for each of the following methods:  CaseMethod Amortization First Year \text { Case\quad Method \quad\quad\quad\quad\quad Amortization First Year }  A) Straight-line.. $____\text { A) Straight-line.. \quad\quad\quad\$\_\_\_\_}  B) Sum-of-the-years’-digits...$____ \text { B) Sum-of-the-years'-digits...\quad\quad\quad\quad\$\_\_\_\_ }  C) Service hours..$____ \text { C) Service hours..\quad\quad\quad\quad\$\_\_\_\_ }  D) Productive output............ $____\text { D) Productive output............ \$\_\_\_\_}  E Declining balance. $____\text { E Declining balance. }\quad\quad\quad\quad\$\_\_\_\_

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CASE A: Straight-line - $45,360/6 = $7,5...

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