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Please help with red X answers. Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the following estimates: Service
Please help with red X answers.
Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the following estimates: Service life 5 years or 10,000 hours Production 180,000 units Residual value $ 18,000 In 2019, Gruman uses the machine for 2,000 hours and produces 50,000 units. In 2020, Gruman uses the machine for 1,200 hours and produces 32,000 units. If required, round your final answers to the nearest dollar.
Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the following estimates: Service life 5 years or 10,000 hours Production 180,000 units Residual value $18,000 Required: 1. Compute the depreciation for 2019 and 2020 under each of the following methods: a. Straight-line method 2019$ 2020$ b. Sum-of-the-years'-digits method 2019$ 2020$ c. Double-declining-balance method 2019$ 2020$ d. Activity method based on hours worked 2019$ 2020$ e. Activity method based on units of output 2019$2020$XX 2. For each method, what is the book value of the machine at the end of 2019 ? At the end of 2020 ? a. Straight-line method 2019$2020$xx b. Sum-of-the-years'-digits method 2019$ 2020$ c. Double-declining-balance method 2019$ 2020$ x d. Activity method based on hours worked 2019$ 2020$ e. Activity method based on units of output 2019$x Depreciation expense a. Straight-line method 2019$ 2020$ b. Sum-of-the-years'-digits method 2019$ 2020$ c. Double-declining-balance method 2019$ 2020$ Book value a. Straight-line method 2019$ 2020$x b. Sum-of-the-years'-digits method 2019$ 2020$ c. Double-declining-balance method 2019$ 2020$Step by Step Solution
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