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 1,400 hours and produces 32,000 units. If required, round your final answers to the nearest dollar.

1. 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	$
   2017	$

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

   2016	$
   2017

3. Double-declining-balance method

   2016
   2017

Book value

1. Straight-line method

   2016	$
   2017	$

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

   2016	$
   2017	$

3. Double-declining-balance method

   2016	$
   2017	$