3-2 Homework: Chapter 11 eBook Show Me How Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the following estimates: Service life Production 5 years or 10,000 hours 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. Required: 1. Compute the depreciation for 2016 and 2017 under each of the following methods: a. Straight-line method 2016 $ 162,000 x 2017 $ 126,000 x b. Sum-of-the-years'-digits method 2016 $ 138,000 x 2017 $ 90,000 x c. Double-declining-balance method 2016 $ 118,800 x 2017 $ 71,280 X d. Activity method based on hours worked 2016 $ 167,400 X 2017 $ 142,200 X e. Activity method based on units of output 2016 $ 153,000 x 2017 $ 121,000 x