Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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 Production180,000 units

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 Production180,000 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.

Activity method based on hours worked 2016$

For each method, what is the book value of the machine at the end of 2016? At the end of 2017?

Double-declining-balance method

2016$

  1. Activity method based on hours worked 2016 $ 2017 $
  2. Activity method based on units of output 2016 $ 2017 $

I keep getting these answers wrong and the last tutor got them wrong as well. I think that I have provided all the relevant information.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics Theory and Applications with Calculus

Authors: Jeffrey M. Perloff

3rd edition

133019934, 978-0133019933

Students also viewed these Accounting questions

Question

Is financial support available for travel to conferences?

Answered: 1 week ago