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On January 1, 2001, FR Purchased a Machine That Cost

Question 137

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On January 1, 2001, FR purchased a machine that cost $50,000 (estimated 10-year life and residual value $6,000). FR's president is considering several amortization methods that could be used for this machine. For analytical purposes, you have been asked to complete the following schedule (round all amounts to the nearest dollar). FR's year-end is December 31 and only accounts for amortization at year-end.  Amortization Method  Amortization Expense  for 2002 Balance in Accumulated  Amortization at DeC. 31, 2002 (a) Straight-line $$ (b) SYD $$ (c) DDB $$ (d) Productive output (Units: total estimated, 20,000;  actual | 2001, 4,000; 2002, 2,000) $$\begin{array}{|l|c|c|}\hline \text { Amortization Method } & \begin{array}{l}\text { Amortization Expense } \\\text { for } 2002\end{array} & \begin{array}{l}\text { Balance in Accumulated } \\\text { Amortization at DeC. 31, } 2002\end{array} \\\hline \text { (a) Straight-line } & \$\underline{\quad\quad} & \$ \underline{\quad\quad} \\\hline \text { (b) SYD } & \$ \underline{\quad\quad}& \$ \underline{\quad\quad} \\\hline \text { (c) DDB } & \$ \underline{\quad\quad}& \$ \underline{\quad\quad} \\\hline \begin{array}{l}\text { (d) Productive output (Units: total estimated, 20,000; } \\\text { actual | 2001, 4,000; 2002, 2,000) }\end{array} & \$\underline{\quad\quad} & \$ \underline{\quad\quad}\\\hline\end{array}

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