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 1,700 hours and produces 45,000 units. In 2017, Gruman uses the machine for 1,200 hours and produces 32,000 units. If required, round your final answers to the nearest dollar.

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

Straight-line method

2016 $

2017 $

Sum-of-the-years'-digits method

2016 $

2017 $

Double-declining-balance method

2016 $

2017 $

Book value Straight-line method

2016 $

2017 $

Sum-of-the-years'-digits method

2016 $

2017 $

Double-declining-balance method

2016 $

2017 $