$198,000 on January 2, 2016. It made the following estimates:
Service life 5 years or 10,000 hours Production 180,000 units
Residual value $ 18,000 In 2016, Gruman uses the machine for 2,000
hours and produces 40,000 units. In 2017, Gruman uses the machine
for 1,200 hours and produces 34,000 units. If required, round your
final answers to the nearest dollar.
- Depreciation Methids Gruman Company Purchased A Machine For 198 000 On January 2 2016 It Made The Following Estimates 1 (27.67 KiB) Viewed 66 times
- Depreciation Methids Gruman Company Purchased A Machine For 198 000 On January 2 2016 It Made The Following Estimates 2 (26.77 KiB) Viewed 66 times
- Depreciation Methids Gruman Company Purchased A Machine For 198 000 On January 2 2016 It Made The Following Estimates 3 (33.55 KiB) Viewed 66 times
2. For each method, what is the book value of the machine at the end of 2016? At the end of 2017? a. Straight-line method 2016 $ 162,000 2017 $ 126,000 b. Sum-of-the-years'-digits method 2016 $ 138,000 2017 $ 90,000 C. Double-declining-balance method 2016 $ 118,800 2017 $ х d. Activity method based on hours worked 2016 $ 162,000 2017 $ х e. Activity method based on units of output 2016 $ х 2017 $ х
3. If Gruman used a service life of 8 years or 15,000 hours and a residual value of $9,000, what would be the effect on the following under the straight-line, sum-of- the-years'-digits, and double-declining-balance depreciation methods? Depreciation expense a. Straight-line method 2016 $ х 2017 $ b. Sum-of-the-years'-digits method 2016 $ 2017 $ c. Double-declining-balance method 2016 $ 2017 $ Book value a. Straight-line method 2016 $ 2017 $ b. Sum-of-the-years'-digits method 2016 $ 2017 $ c. Double-declining-balance method 2016 $ 2017 $