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On January 1, 2015, Zane Manufacturing Company purchased a machine for $40,000. The company expects...

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Accounting

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On January 1, 2015, Zane Manufacturing Company purchased a machine for $40,000. The company expects to use the machine a total of 24,000 hours over the next 6 years. The estimated sales price of the machine at the end of 6 years is $4,000. The company used the machine 8,000 hours in 2015 and 12,000 in 2016 9. What is the book value of the machine at the end of 2016 if the company uses the double- declining-balance amortization? A) $20,000 B) $4,000 C) $13,333 D) $28,000 E) $17,778 10. What is the journal entry to record the sale of the machine at the end of 20 cord the sale of the machine at the end of 2016 for $26,500 if the company uses straight-line amortization? A) Cash 26,500 Accumulated amortization, machine 6,000 Gain on sale of machine 7,500 Machine 40,000 B) Cash Accumulated amortization, machine Loss on sale of machine Machine 26,500 12,000 1,500 40,000 C) Cash Accumulated amortization, machine Loss on sale of machine Machine 26,500 6,000 7,500 40,000 D) Cash Loss on sale of machine Machine 26,500 1,500 28,000 E) None of the above

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