ACCT231

Gruman Compamy purchased a machine for $198,000 on January 2,2019 . It made the following estimates: In 2019, Gruman uses the machine for 1,700 hours and produces 50,000 units. In 2020, Gruman uses the machine for 1,200 hours and produces 32,000 units. If required, round your final answers to the nearest dollar. Required: 1. Compute the depreciation for 2019 and 2020 under each of the following methods: a. Straight-line method 2019520205 b. Sum-or-the-years'-digits method 2019520205 c. Double-declining-balance method 2019$ 4. Activity method based on hours worked 2019$1acone e. Activity method based on units of output 201952020$XX 2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? a. Straight-line method 2019$2020$ b. Sum-of-the-years'-digits method 20195 2020$ c. Double-declining-balance method 2019$2020$ d. Activity method based on hours worked 2019$2020$ e. Activity method based on units of output 2019$2020$xx d. Activity method based on hours worked 2019520205 e. Activity method based on units of output 2019$x20205 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 the-years'-digits, and double-declining-balance depreciation methods? Depreciation expense a. Straight-line method 2019$20205 b. 5um-of-the-years'-digits method 2019$2020$ c. Double-declining-balance method 2019s20205 Book value