Gruman Company purchased a machine for $198,000 on January 2, Year 1. It made the following estimates: Service life 5 years or 10,000 hours Production 180,000 units Residual value $ 18,000 In Year 1, Gruman uses the machine for 2,000 hours and produces 45,000 units. In Year 2, Gruman uses the machine for 1,200 hours and produces 30,000 units. If required, round your final answers to the nearest dollar. If Gruman used a service life of 8 years or 15,000 hours and a residual value of $9,000, what would be the effect on the following under the straight-line, sum-of-the-years'-digits, and double-declining-balance depreciation methods? Book value Straight-line method Year 1 $fill in the blank 27 Year 2 $fill in the blank 28 Sum-of-the-years'-digits method Year 1 $fill in the blank 29 Year 2 $fill in the blank 30 Double-declining-balance method Year 1 $fill in the blank 31 Year 2 $fill in the blank 32
Gruman Company purchased a machine for $198,000 on January 2, Year 1. It made the following estimates: Service life 5 years or 10,000 hours Production 180,000 units Residual value $ 18,000 In Year 1, Gruman uses the machine for 2,000 hours and produces 45,000 units. In Year 2, Gruman uses the machine for 1,200 hours and produces 30,000 units. If required, round your final answers to the nearest dollar. If Gruman used a service life of 8 years or 15,000 hours and a residual value of $9,000, what would be the effect on the following under the straight-line, sum-of-the-years'-digits, and double-declining-balance depreciation methods? Book value Straight-line method Year 1 $fill in the blank 27 Year 2 $fill in the blank 28 Sum-of-the-years'-digits method Year 1 $fill in the blank 29 Year 2 $fill in the blank 30 Double-declining-balance method Year 1 $fill in the blank 31 Year 2 $fill in the blank 32
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Gruman Company purchased a machine for $198,000 on January 2, Year 1. It made the following estimates:
| Service life | 5 years or 10,000 hours |
| Production | 180,000 units |
| Residual value | $ 18,000 |
In Year 1, Gruman uses the machine for 2,000 hours and produces 45,000 units. In Year 2, Gruman uses the machine for 1,200 hours and produces 30,000 units. If required, round your final answers to the nearest dollar.
- If Gruman used a service life of 8 years or 15,000 hours and a residual value of $9,000, what would be the effect on the following under the straight-line, sum-of-the-years'-digits, and double-declining-balance
depreciation methods?Book value
- Straight-line method
Year 1 $fill in the blank 27 Year 2 $fill in the blank 28 - Sum-of-the-years'-digits method
Year 1 $fill in the blank 29 Year 2 $fill in the blank 30 - Double-declining-balance method
Year 1 $fill in the blank 31 Year 2 $fill in the blank 32
- Straight-line method
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