XYZ Purchased a Machine That Cost $62,000; the Estimated Residual

question 84

Essay

XYZ purchased a machine that cost $62,000; the estimated residual value is $2,000.The following data are available at the end of the first year of use: $\begin{array}{|l|l|}\hline \text { Estimated Life } & \text { Utilization During First Year } \\\hline \mathbf{5} \text { years } & \text { One year } \\\hline \mathbf{1 , 5 0 0 , 0 0 0} \text { service hours } & \mathbf{3 1 0 , 0 0 0} \\\hline \mathbf{3 0 0 , 0 0 0} \text { production units } &\mathbf{5 0 , 0 0 0} \\\hline\end{array}$ Based on the forgoing data,complete the following tabulation.Show computations. $\begin{array}{|ccc|}\hline & \text { Method } & \text { Amortization Expense First } \\\hline & & \text { Year } \\\hline A&\text { Straight-line }&\$\_\_\_\_\_\\\hline\end{array}$ $\text { B) Sum-of-the-years'-digits... }\quad\quad\quad\quad\$\_\_\_\_$ $\text { C) Senice hours. }\quad\quad\quad\quad\$\_\_\_\_$ D $\quad$ Declining balance. $\quad$$\quad$$\$\_\_\_$ E $\quad$ Productive output. $\quad$$\quad$$\$\_\_\_$

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Definitions:

Ignition Source

A material or process that can release enough energy to start a combustion reaction.

Cone Heater

A device typically used to generate and distribute heat, often in industrial settings, named for its cone-shaped heating element.

Combustion

The process of burning something in the presence of oxygen, resulting in the release of heat and light.

Bomb Calorimeter

An apparatus used for measuring the heat of combustion of a particular reaction.