Gruman Company purchased a machine for $198,000 on January 2 , Year 1 . It made the following estimates: In Year 1, Gruman uses the machine for 1,700 hours and produces 50,000 units. In Year 2, Gruman uses the machine for 1,200 hours and produces 32,000 units. If required, round your final answers to the nearest dollar. Required: 1. Compute the depreciation for Year 1 and Year 2 under each of the following methods: a. Straight-line method Year 1 \$ Year 2 b. Sum-of-the-years'-digits method Year 1$ Year 2$ c. Double-declining-balance method Year 1$ Year 2$ d. Activity method based on hours worked Year 1$ Year 2$ e. Activity method based on units of output Year 1$ Year 2$ 2. For each method, what is the book value of the machine at the end of Year 1? At the end of Year 2? a. Straight-line method Year 1$ Year 2$ b. Sum-of-the-years'-digits method Year 1 \$ Year 2$ c. Double-declining-balance method Year 1 \$ Year 2$ d. Activity method based on hours worked Year 1$ Year 2$ e. Activity method based on units of output Year 1$ Year 2$ 3. If Gruman used a service life of 8 years or 15,000 hours and a residual value of $9,000, what would be the effect on the following under the straight-line, sum-ofthe-years'-digits, and double-declining-balance depreciation methods? Depreciation expense a. Straight-line method Year 1 \$ Year 2 \$ b. Sum-of-the-years'-digits method Year 1 \$ Year 2$ c. Double-declining-balance method Year 1$ Year 2$ Book value a. Straight-line method Year 1$ Year 2 \$ b. Sum-of-the-years'-digits method Year 1 \$ Year 2$ c. Double-declining-balance method Year 1$