(a) On July 1, 2001, XY purchased a machine that cost $22,000. It has a four-year life and $2,000 estimated residual value. It is to be depreciated using the sum-of-the-years'-digits method. Give the amortization entry at the end of 2001 and 2002 (end of the accounting period). XY has a December, 31 year-end
(b) Refer to the data in the above situation. Suppose instead the machine is to be depreciated using the service-hours method and its estimated life is 20,000 hours. Give the amortization entry at the end of 2001 and 2002, assuming it was used 3,000 hours during 2001 and 7,000 hours during 2002.

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The Answer of (a) On July 1, 2001, XY purchased a machine that cost $22,000. It has a four-year life and $2,000 estimated residual value. It is to be depreciated using the sum-of-the-years'-digits method. Give the amortization entry at the end of 2001 and 2002 (end of the accounting period). XY has a December, 31 year-end
(b) Refer to the data in the above situation. Suppose instead the machine is to be depreciated using the service-hours method and its estimated life is 20,000 hours. Give the amortization entry at the end of 2001 and 2002, assuming it was used 3,000 hours during 2001 and 7,000 hours during 2002.

(A) on July 1, 2001, XY Purchased a Machine That