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. $\begin{array}{|l|l|l|}\hline \text { Method } & \text { Method } & \text { Amortization First Year } \\\hline \text { A } & \text { Straight-line } & \$ \\\hline \text { B } & \text { Sum-of-the-years'-digits } & \$ \\\hline \text { C } & \text { Service hours } & \$ \\\hline \text { D } & \text { Declining balance } & \$ \\\hline \text { E } & \text { Productive output } & \$ \\\hline\end{array}$

---

Definitions:

Socialization Influence

The effect of interacting with others and the environment on the development of an individual's social behaviors, norms, and values.

Development

The processes by which organisms unfold features and traits, grow, and become more complex and specialized in structure and function.

Mathematics

The science that deals with the logic of shape, quantity, and arrangement through the use of numbers and symbols.

Primary Grades

The initial stages of formal education typically comprising elementary school grades 1 through 3 or 4, focusing on basic academic learning and socialization skills.