Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with the red x answers and the blank ones Service life 5 years or 10,000 hours Production 180,000 units Residual value $ 18,000

Please help with the red x answers and the blank ones

image text in transcribed
Service life 5 years or 10,000 hours Production 180,000 units Residual value $ 18,000 In 2016, Gruman uses the machine for 2,000 hours and produces 45,000 units. In 2017, 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 2016 and 2017 under each of the following methods: a. Straight-line method 2016 $ 36,000 2017 $ 36,000 b. Sum-of-the-years'-digits method 2016 $ 60,000 2017 $ 48,000 c. Double-declining-balance method 2016 $ 79,200 2017 $ 47,520 d. Activity method based on hours worked 2016 $ 36,000 2017 $ 21,600 e. Activity method based on units of output 2016 $ 45,000 2017 $ 32,000 2. For each method, what is the book value of the machine at the end of 2016? At the end of 2017? a. Straight-line method 2016 $ 162,000 V 2017 $ 126,000 V b. Sum-of-the-years'-digits method 2016 $ 138,00 V 2017 $ 90,000 c. Double-declining-balance method 2016 $ 118,80( 2017 $ 71,280 d. Activity method based on hours worked 2016 $ 153,00 X 2017 $ 121,001 X e. Activity method based on units of output 2016 $ 2017 $

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

Fundamentals of Ethics for Scientists and Engineers

Authors: Edmund G. Seebauer, Robert L. Barry

1st Edition

9780195698480, 195134885, 195698487, 978-0195134889

Students also viewed these Mathematics questions

Question

How does countertrade work? Is it an efficient economic concept?

Answered: 1 week ago