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

question 10

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: $\begin{array} { | l | l | } \hline \text { Estimated Life } & \text { Utilization During First Year } \\\hline 5 \text { years } & 1 \text { year } \\\hline 1,500,000 \text { service hours } & 310,000 \\\hline 300,000 \text { units of product } & 50,000 \\\hline\end{array}$ Based on the forgoing data, complete the following tabulation. Show computations. $\begin{array}{|l|l|l|}\hline \text { Method } & \text { Method } & \text { Amortization First Year } \\\hline \text { A } & \text { Straight-line } & \$ \\\hline \text { B } & \text { Sum-of-the-years'-digits } & \$ \\\hline \text { C } & \text { Service hours } & \$ \\\hline \text { D } & \text { Declining balance } & \$ \\\hline \text { E } & \text { Productive output } & \$ \\\hline\end{array}$

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