1. MC.11-02 2. RE.11-12 3. RE.11-12.Algo 4. Ex. 11-01 5. Ex. 11-01.Algo 6. Ex. 11-13 7. Ex.11-13.Algo 8. Ex. 11-20 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 $ 12,375 X 2017 $ 12,375 X

Depreciation Methods

Gruman Company purchased a machine for $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 1,400 hours and produces 30,000 units. If required, round your final answers to the nearest dollar.

Required:

1. Compute the depreciation for 2016 and 2017 under each of the following methods:

1. Straight-line method

   2016	$ fill in the blank 1
   2017	$ fill in the blank 2

2. Sum-of-the-years'-digits method

   2016	$ fill in the blank 3
   2017	$ fill in the blank 4

3. Double-declining-balance method

   2016	$ fill in the blank 5
   2017	$ fill in the blank 6

4. Activity method based on hours worked

   2016	$ fill in the blank 7
   2017	$ fill in the blank 8

5. Activity method based on units of output

   2016	$ fill in the blank 9
   2017	$ fill in the blank 10

2. For each method, what is the book value of the machine at the end of 2016? At the end of 2017?

1. Straight-line method

   2016	$ fill in the blank 11
   2017	$ fill in the blank 12

2. Sum-of-the-years'-digits method

   2016	$ fill in the blank 13
   2017	$ fill in the blank 14

3. Double-declining-balance method

   2016	$ fill in the blank 15
   2017	$ fill in the blank 16

4. Activity method based on hours worked

   2016	$ fill in the blank 17
   2017	$ fill in the blank 18

5. Activity method based on units of output

   2016	$ fill in the blank 19
   2017	$ fill in the blank 20

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

1. Straight-line method

   2016	$ fill in the blank 21
   2017	$ fill in the blank 22

2. Sum-of-the-years'-digits method

   2016	$ fill in the blank 23
   2017	$ fill in the blank 24

3. Double-declining-balance method

   2016	$ fill in the blank 25
   2017	$ fill in the blank 26

Book value

1. Straight-line method

   2016	$ fill in the blank 27
   2017	$ fill in the blank 28

2. Sum-of-the-years'-digits method

   2016	$ fill in the blank 29
   2017	$ fill in the blank 30

3. Double-declining-balance method

   2016	$ fill in the blank 31
   2017	$ fill in the blank 32

Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the following estimates: Service ife 5 yours of 10,000 fucurs. Prodvenen 1 ald 86stnna Hewitual whin 1 te noo In 2016, Gruman uses the machine for 2,000 hours and produces 40,000 units. In 2017, Gruman uses the machine for 1,400 hours and produces 30,000 units. If required, round your final answers to the nearest dollar. Required: 1. Compute the depreciation for 2016 and 2017 under each of the following methods: a. Straight-line method 2et6 5 x 25171 x b. Sum-of-the-years'-digits method zots is x 2517x c. Double-declining-balance method 2016 is x 2517m d. Activity method based on hours worked 20165 2067+x e. Activity method based on units of output 20173 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 2917s b. Sum-of-the-years'-digits method 2016s 2517 it c. Double-declining-balance method 2014 20173 d. Activity method based on hours worked 20161x 20+7+x e. Activity method based on units of output zots 1 20+73 x 3. If Gruman used a service life of 8 years or 15,000 hours. 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-ofthe-years'-digits, and double-declining-balance depreciation methods? Depreciation expense a. Straight-line method 2016$2017$xx p. Sum-of-the-years'-digits method 2016$x 2017$x c. Double-declining-balance method 2016$x 20175x Book value a. Straight-line method 2016$ x 20175 x b. Sum-of-the-years'-digits method 2016$17$17x c. Double-declining-balance method 2016$ x 2017$ x 3.3 Homewerk Chapter 11 Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the following estimates: In 2016, Gruman uses the machine for 2,000 hours and produces 40,000 units. in 2017, Gruman uses the machine for 1,400 hours and produces 30,000 units. If required, round your final answers to the nearest dollar. Required: 1. Compute the depreciation for 2016 and 2017 under each of the following methods: a. Straight-line method abis:zo17sxx b. Sum-of-the-years'-digits method 2016320174xx c. Double-declining-balance method 2016320131xx d. Activity method based on hours worked zo16s20131xx e. Activity method based on units of output 2016325173xx 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 20163 26175 b. Sum-of-the-years'-digits method 20163 2017. c. Double-declining-balance method 20164 20175 d. Activity method based on hours worked zous: x 2045+x 20173x e. Activity method based on units of output 20165 2617i 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, sumof-the-years"-digits, and double-declining-balance depreciation methods? 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, sumof-the-years'-digits, and double-declining-balance depreciation methods? Depreciation expense a. Straight-line method 2016$2017$xx 2016$x 2017$x b. Sum-of-the-years'-digits method 2016$2017$xx 2016$x 2017$x c. Double-declining-balance method 2016$x 2017$x Book value a. Straight-line method 2016$x 2017$x b. Sum-of-the-years'-digits method 2016$x 2017$x c. Double-declining-balance method 2016$x 2017$