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I attached the information needed to this post. Thank you in advance. The Gruman Company purchased a machine for $ 220,000 on January 2, 2013.
I attached the information needed to this post. Thank you in advance.
The Gruman Company purchased a machine for $ 220,000 on January 2, 2013. It made the following estimates: Service life Production Residual value 5 years or 10,000 hours 200,000 units $ 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. 1. a. Required: Compute the depreciation for 2013 and 2014 under each of the following methods: Straight-line method 2013 $ 2014 $ b. Sum-of-the-years'-digits method 2013 $ 2014 $ c. Double-declining-balance method 2013 $ 2014 $ d. Activity method based on hours worked 2013 $ 2014 $ e. Activity method based on units of output 2013 $ 2014 $ 2. a. For each method, what is the book value of the machine at the end of 2013? At the end of 2014? Straight-line method 2013 $ 2014 $ b. Sum-of-the-years'-digits method 2013 $ 2014 $ c. Double-declining-balance method 2013 $ 2014 $ d. Activity method based on hours worked 2013 $ 2014 $ e. Activity method based on units of output 2013 $ 2014 $ 3. a. If Gruman used a service life of 8 years or 15,000 hours and a residual value of $10,000, 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 2013 $ 2014 $ b. Sum-of-the-years'-digits method 2013 $ 2014 $ c. Double-declining-balance method 2013 $ 2014 $ Book value d. Straight-line method 2013 $ 2014 $ e. Sum-of-the-years'-digits method 2013 $ 2014 $ f. Double-declining-balance method 2013 $ 2014 $Step by Step Solution
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