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Gruman Company purchased a machine for $ 1 9 8 , 0 0 0 on January 2 , 2 0 1 6 . It made
Gruman Company purchased a machine for $
on January
It made the following estimates:
Service life
years or
hours
Production
units
Residual value $
In
Gruman uses the machine for
hours and produces
units In
Gruman uses the machine for
hours and produces
units If required, round your final answers to the nearest dollar.
Required:
Compute the depreciation for
and
under each of the following methods:
Straight
line method
$ fill in the blank
$ fill in the blank
Sum
of
the
years'
digits method
$ fill in the blank
$ fill in the blank
Double
declining
balance method
$ fill in the blank
$ fill in the blank
Activity method based on hours worked
$ fill in the blank
$ fill in the blank
Activity method based on units of output
$ fill in the blank
$ fill in the blank
For each method, what is the book value of the machine at the end of
At the end of
Straight
line method
$ fill in the blank
$ fill in the blank
Sum
of
the
years'
digits method
$ fill in the blank
$ fill in the blank
Double
declining
balance method
$ fill in the blank
$ fill in the blank
Activity method based on hours worked
$ fill in the blank
$ fill in the blank
Activity method based on units of output
$ fill in the blank
$ fill in the blank
If Gruman used a service life of
years or
hours and a residual value of $
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
$ fill in the blank
$ fill in the blank
Sum
of
the
years'
digits method
$ fill in the blank
$ fill in the blank
Double
declining
balance method
$ fill in the blank
$ fill in the blank
Book value
Straight
line method
$ fill in the blank
$ fill in the blank
Sum
of
the
years'
digits method
$ fill in the blank
$ fill in the blank
Double
declining
balance method
$ fill in the blank
$ fill in the blank
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