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 1,700 hours and produces 50,000 units. In 2020, Gruman uses the machine for 1,200 hours and produces 34,000 units. If required, round your final answers to the nearest dollar. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? Straight-line method 2019 $ fill in the blank 11 2020 $ fill in the blank 12 Sum-of-the-years'-digits method 2019 $ fill in the blank 13 2020 $ fill in the blank 14 Double-declining-balance method 2019 $ fill in the blank 15 2020 $ fill in the blank 16
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 1,700 hours and produces 50,000 units. In 2020, Gruman uses the machine for 1,200 hours and produces 34,000 units. If required, round your final answers to the nearest dollar. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? Straight-line method 2019 $ fill in the blank 11 2020 $ fill in the blank 12 Sum-of-the-years'-digits method 2019 $ fill in the blank 13 2020 $ fill in the blank 14 Double-declining-balance method 2019 $ fill in the blank 15 2020 $ fill in the blank 16
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 1,700 hours and produces 50,000 units. In 2020, Gruman uses the machine for 1,200 hours and produces 34,000 units. If required, round your final answers to the nearest dollar.
- For each method, what is the book value of the machine at the end of 2019? At the end of 2020?
- Straight-line method
2019 $ fill in the blank 11 2020 $ fill in the blank 12 - Sum-of-the-years'-digits method
2019 $ fill in the blank 13 2020 $ fill in the blank 14 - Double-declining-balance method
2019 $ fill in the blank 15 2020 $ fill in the blank 16 - Activity method based on hours worked
2019 $ fill in the blank 17 2020 $ fill in the blank 18 - Activity method based on units of output
2019 $ fill in the blank 19 2020 $ fill in the blank 20
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