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

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

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

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