On January 1,2013,SK Purchased a Machine That Cost $20,000 A)Choice 1
B)Choice 2
C)Choice 3
D)Choice 4

On January 1,2013,SK purchased a machine that cost $20,000.It has an estimated four-year life,and a 10 percent residual value.The machine is expected to be used for a total of 1,500 productive hours over the next 4 years.During 2013,it was used 430 hours.Using (a) straight-line and (b) productive time,SK should report 2013 amortization expense as follows: $$\begin{array} { | l l l | } \hline & \text { Straight-line } & \text { Productive Hours } \\\hline 1 & \$ 4,500 & \$ 5,160 \\\hline 2 & \$ 4,500 & \$ 5,735 \\\hline 3 & \$ 5,000 & \$ 5,160 \\\hline 4 & \$ 5,000 & \$ 5,735 \\\hline\end{array}$$

A) Choice 1
B) Choice 2
C) Choice 3
D) Choice 4

Correct Answer:

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