A Machine Cost $21,000 and Has an Estimated Useful Life $\begin{array}{llll} & \text { Year 1 } & \text { Year 2 } \\\hline\text { (a) Sum-of-the-years'-digits... }&\$\_\_\_\_&\$\_\_\_\_\end{array}$

question 38

Essay

A machine cost $21,000 and has an estimated useful life of five years and a residual value of $3,000.What is the annual amortization expense for each of the first two years under the following amortization methods? $\begin{array}{llll} & \text { Year 1 } & \text { Year 2 } \\\hline\text { (a) Sum-of-the-years'-digits... }&\$\_\_\_\_&\$\_\_\_\_\end{array}$ $\text { (b) Declining balance... }\quad\quad\quad\quad\$\_\_\_\_ \quad\quad\quad\quad\$\_\_\_\_$ (c) Productive output (potential output is estimated at 90,000 units,in the first year,
The machine turned out 15,000 units; in the second year, $\text { I8,000 units) }\quad\quad\quad\quad\$\_\_\_\_ \quad\quad\quad\quad\$\_\_\_\_$ $\text { (d) Straight-line .................. } \quad\quad\quad\quad\$\_\_\_\_\quad\quad\quad\quad\$\_\_\_\_$

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