Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the following estimates: Service life Production Residual value 5 years or 10,000 hours 180,000 units $ 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 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 $ 36,000 2017 $ 36,000 b. Sum-of-the-years'-digits method 2016 $ 2017 $ 60,000 48,000 c. Double-declining-balance method 2016 $ 79,200 2017 $ 47,520 d. Activity method based on hours worked 2016 $ 2017 $ 30,600 25,200 e. Activity method based on units of output 2016 $ 45,000