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2. In recent years, Gadget Company purchased three machines. Amortization methods were chosen based on the estimated life and use of each machine: Machine Date

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2. In recent years, Gadget Company purchased three machines. Amortization methods were chosen based on the estimated life and use of each machine: Machine Date Purchased Cost Residual Value Useful Life Amortization Method A Jan. 1, 2013 $85,000 $5,000 10 Straight-Line B Jan. 1, 2013 $100,000 $10,000 5 Declining Balance C Feb. 1, 2013 $90,000 $5,000 6 Units of Activity For the declining balance method, the company uses double the straight-line rate. Machine C is expected to produce 50 000 units over its useful life. The actual usage was 8 000 units for 2013, 10 000 units for 2014, and 9 000 units for 2015. a) Calculate the amortization expense for each machine in 2013, 2014, and 2015. b) Calculate the accumulated amortization for each machine at December 31, 2015

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