Depreciation Methods The Gruman Company purchased a machine for $ 220,000 on January 2, 2013. It made the following estimates: Service life 5 years or 10,000 hours Production 200,000 units Residual value $ 20,000 In 2013, Gruman uses the machine for 1,800 hours and produces 44,000 units. In 2014, Gruman uses the machine for 1,500 hours and produces 35,000 units. If required, round your final answer to the nearest dollar. Required:

3. If Gruman used a service life af 8 years or 15,000 hours and a residual value of $10,000, what d be the effect on the following under the of-the-y digits, and double-declining-balance depreciation methods? straight- Depreciati on expense a. Straight-line method 2013 26250 20 14 26250 b. Sum-of-the-years'-digits method 2013 46667 2014 40833 c Double-dedining balance method 2013 55000 2014 41250 Book value a. Straight-line method 2013 19375 2014 16750 b. Sum-of-the-years' -digits method 20 17555E 13 20 14 13666 Double-dedining-balance method 2013 16500 2014 12375