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The Gruman Company purchased a machine for $ 220,000 on January 2, 2013. It made the following estimates: Service life 5 years or 10,000 hours
The Gruman Company purchased a machine for $ 220,000 on January 2, 2013. It made the following estimates:
Service life | 5 years or 10,000 hours |
Production | 200,000 units |
Residual value | $ 20,000 |
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 | $ |
Sum-of-the-years'-digits method
2013 | $ |
2014 | $ |
Double-declining-balance method
2013 | $ |
2014 | $ |
Activity method based on hours worked
2013 | $ |
2014 | $ |
Activity method based on units of output
2013 | $ |
2014 | $ |
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