Cummings corporation has a capital asset (e.g., a machine) that cost $12,000 when acquired (estimated useful life, 4 years and the estimated sale price at disposal date $2,000 ). The estimated cost of dismantling and removing the machine at the end of year 4 is $150. Assuming straight-line amortization, the annual amortization expense is: Multiple Choice $2,030 $2,500 $2,538 $3,000 Amortization: Multiple Choice is an allocation of property, plant, and equipment cost to the time period of usefulness, in a systematic and rational manner. Is a process of recognizing the decreasing value of an asset over time. is a cash expense. expense of $2,000 reflects a $2,000 increase in liquid funds