Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, Year 1. It made the following estimates: Service life 5 years or 10,000 hours Production 180,000 units Residual value $18,000 Required: 1. Compute the depreciation for Year 1 and Year 2 under each of the following methods: a. Straight-line method Year 1 \$ Year 2$ b. Sum-of-the-years'-digits method Year 1$ Year 2$ c. Double-declining-balance method Year 1$ Year 2$ d. Activity method based on hours worked Year 1$ Year 2$ e. Activity method based on units of output Year 1$ Year 2$ 2. For each method, what is the book value of the machine at the end of Year 1? At the end of Year 2? a. Straight-line method Year 1$ Year 2$ b. Sum-of-the-years'-digits method Year 1$ Year 2$ c. Double-declining-balance method Year 1$ Year 2$ d. Activity method based on hours worked Year 1$ Year 2$ Year 2$ Depreciation expense a. Straight-line method Year 1$ Year 2$ b. Sum-of-the-years'-digits method Year 1$ Year 2$ c. Double-declining-balance method Year 1$ Year 2$ Book value a. Straight-line method Year 1 \$ Year 2$ b. Sum-of-the-years'-digits method Year 1$ Year 2$ c. Double-declining-balance method Year 1 \$ Year 2$