13. A machine with a cost of $120,000 has an estimated residual value of $15,000 and an estimated life of five years or 15,000 hours. It is to be depreciated by the units-of-activity method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?

14. Chang Co. issued a $50,000, 120-day, discounted note to Guarantee Bank. The discount rate is 6%.Assuming a 360-day year, what are the cash proceeds available to Chang Co.? Journalize the issuance and payment of the note upon due date.

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