Question
Spacely's Sprockets purchased a machine on September 1, for $400,000. The machine's useful life was estimated at six years or 500,000 units of product
Spacely's Sprockets purchased a machine on September 1, for $400,000. The machine's useful life was estimated at six years or 500,000 units of product with a $25,000 trade-in value. During its second year, the machine produced 87,000 units of product. Assuming units-of-production amortization, calculate the machine's second-year amortization.
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