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

$1$

$,$

$700$

$$hours and produces

$50$

$,$

$000$

$$units$.$ In

$2017$

$,$

$$Gruman uses the machine for

$1$

$,$

$400$

$$hours and produces

$30$

$,$

$000$

$$units$.$ If required, round your final answers to the nearest dollar.

Required:

Compute the depreciation for

$2016$

$$and

$2017$

$$under each of the following methods:

Straight

$-$

line method

$2016$

$$$ fill in the blank

$1$

$2017$

$$$ fill in the blank

$2$

Sum

$-$

of

$-$

the

$-$

years'

$-$

digits method

$2016$

$$$ fill in the blank

$3$

$2017$

$$$ fill in the blank

$4$

Double

$-$

declining

$-$

balance method

$2016$

$$$ fill in the blank

$5$

$2017$

$$$ fill in the blank

$6$

Activity method based on hours worked

$2016$

$$$ fill in the blank

$7$

$2017$

$$$ fill in the blank

$8$

Activity method based on units of output

$2016$

$$$ fill in the blank

$9$

$2017$

$$$ fill in the blank

$10$

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

$20$

If Gruman used a service life of

$8$

$$years or

$15$

$,$

$000$

$$hours and a residual value of $

$9$

$,$

$000$

$,$

$$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

$2016$

$$$ fill in the blank

$21$

$2017$

$$$ fill in the blank

$22$

Sum

$-$

of

$-$

the

$-$

years'

$-$

digits method

$2016$

$$$ fill in the blank

$23$

$2017$

$$$ fill in the blank

$24$

Double

$-$

declining

$-$

balance method

$2016$

$$$ fill in the blank

$25$

$2017$

$$$ fill in the blank

$26$

Book value

Straight

$-$

line method

$2016$

$$$ fill in the blank

$27$

$2017$

$$$ fill in the blank

$28$

Sum

$-$

of

$-$

the

$-$

years'

$-$

digits method

$2016$

$$$ fill in the blank

$29$

$2017$

$$$ fill in the blank

$30$

Double

$-$

declining

$-$

balance method

$2016$

$$$ fill in the blank

$31$

$2017$

$$$ fill in the blank

$32$