Depreciation Methods

Gruman Company purchased a machine for $$220,000$ on January $2,2019.$ It made the following estimates:

Service life $5$ years or $10,000$ hours

Production $200,000$ units

Residual value $$20,000$

In $2019,$ Gruman uses the machine for $1,800$ hours and produces $44,000$ units. In $2020,$ Gruman uses the machine for $1,500$ hours and produces $35,000$ units. If required, round your final answers to the nearest dollar.

Required:

Compute the depreciation for $2019$ and $2020$ under each of the following methods:

Straight$-$line method

$2019$ $ fill in the blank $1$

$2020$ $ fill in the blank $2$

Sum$-$of$-$the$-$years'$-$digits method

$2019$ $ fill in the blank $3$

$2020$ $ fill in the blank $4$

Double$-$declining$-$balance method

$2019$ $ fill in the blank $5$

$2020$ $ fill in the blank $6$

Activity method based on hours worked

$2019$ $ fill in the blank $7$

$2020$ $ fill in the blank $8$

Activity method based on units of output

$2019$ $ fill in the blank $9$

$2020$ $ fill in the blank $10$

For each method, what is the book value of the machine at the end of $2019?$ At the end of $2020?$

Straight$-$line method

$2019$ $ fill in the blank $11$

$2020$ $ fill in the blank $12$

Sum$-$of$-$the$-$years'$-$digits method

$2019$ $ fill in the blank $13$

$2020$ $ fill in the blank $14$

Double$-$declining$-$balance method

$2019$ $ fill in the blank $15$

$2020$ $ fill in the blank $16$

Activity method based on hours worked

$2019$ $ fill in the blank $17$

$2020$ $ fill in the blank $18$

Activity method based on units of output

$2019$ $ fill in the blank $19$

$2020$ $ fill in the blank $20$

If Gruman used a service life of $8$ years or $15,000$ hours and a residual value of $$10,000,$ 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

$2019$ $ fill in the blank $21$

$2020$ $ fill in the blank $22$

Sum$-$of$-$the$-$years'$-$digits method

$2019$ $ fill in the blank $23$

$2020$ $ fill in the blank $24$

Double$-$declining$-$balance method

$2019$ $ fill in the blank $25$

$2020$ $ fill in the blank $26$

Book value

Straight$-$line method

$2019$ $ fill in the blank $27$

$2020$ $ fill in the blank $28$

Sum$-$of$-$the$-$years'$-$digits method

$2019$ $ fill in the blank $29$

$2020$ $ fill in the blank $30$

Double$-$declining$-$balance method

$2019$ $ fill in the blank $31$

$2020$ $ fill in the blank $32$