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

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): $\begin{array}{|l|l|}\hline \text { Estimated Life } & \text { Utilization During } 2001 \\\hline 6 \text { years } & 1 \text { year } \\\hline 216,000 \text { service hours } & 20,000 \text { service hours } \\\hline \begin{array}{l}100,000 \text { units of } \\\text { product }\end{array} & 15,000 \text { units } \\\hline\end{array}$ Give the 2001 amortization expense for each of the following methods: $\text { Case\quad Method \quad\quad\quad\quad\quad Amortization First Year }$ $\text { A) Straight-line.. \quad\quad\quad\$\_\_\_\_}$ $\text { B) Sum-of-the-years'-digits...\quad\quad\quad\quad\$\_\_\_\_ }$ $\text { C) Service hours..\quad\quad\quad\quad\$\_\_\_\_ }$ $\text { D) Productive output............ \$\_\_\_\_}$ $\text { E Declining balance. }\quad\quad\quad\quad\$\_\_\_\_$

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

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