Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 2,000 hours and produces 40,000 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. For each method, what is the book value of the machine at the end of 2016? At the end of 2017? Straight-line method 2016 $ fill in the blank 11 2017 $ fill in the blank 12 Sum-of-the-years'-digits method 2016 $ fill in the blank 13 2017 $ fill in the blank 14 Double-declining-balance method 2016 $ fill in the blank 15 2017 $ fill in the blank 16 Activity method based on hours worked 2016 $ fill in the blank 17 2017 $ fill in the blank 18 Activity method based on units of output 2016 $ fill in the blank 19 2017 $ fill in the blank 20
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started