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what is the answer of 2 and 3 part of this qestion. ? Depreciation Methods Gruman Company purchased a machine for $220,000 on January 2,

what is the answer of 2 and 3 part of this qestion. ?

Depreciation Methods

Gruman Company purchased a machine for $220,000 on January 2, 2016. It made the following estimates:

Service life 5 years or 10,000 hours
Production 200,000 units
Residual value $20,000

In 2016, Gruman uses the machine for 1,800 hours and produces 44,000 units. In 2017, Gruman uses the machine for 1,500 hours and produces 35,000 units. If required, round your final answer to the nearest dollar.

Required:

Compute the depreciation for 2016 and 2017 under each of the following methods:

Straight-line method

2016 $
2017 $

Sum-of-the-years'-digits method

2016 $
2017 $

Double-declining-balance method

2016 $
2017 $

Activity method based on hours worked

2016 $
2017 $

Activity method based on units of output

2016 $
2017 $

For each method, what is the book value of the machine at the end of 2016? At the end of 2017?

Straight-line method

2016 $
2017 $

Sum-of-the-years'-digits method

2016 $
2017 $

Double-declining-balance method

2016 $
2017 $

Activity method based on hours worked

2016 $
2017 $

Activity method based on units of output

2016 $
2017 $

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

2016 $
2017 $

Sum-of-the-years'-digits method

2016 $
2017 $

Double-declining-balance method

2016 $
2017 $

Book value

Straight-line method

2016 $
2017 $

Sum-of-the-years'-digits method

2016 $
2017 $

Double-declining-balance method

2016 $
2017 $

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