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 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 $ 40,000 V 2017 $ b. Sum-of-the-years'-digits method 193,333 X 2016 $ 2017 $ c. Double-declining-balance method 2016 $ 2017 $ HArtivitv method hased on hours worked Previous Next

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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 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 $
40,000
2017 $
b. Sum-of-the-years'-digits method
2016 $
193,333 X
2017 $
c. Double-declining-balance method
2016 $
2017 $
H Artivity method haced on hours worked
Next
Previous
Check My Work
11:17 PM
71 F Sunny
11/11/2021
Transcribed Image Text:ain.do?invoker=&takeAssignmentSessionLocator=&inprogress3Dfalse еВook Show Me How 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 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 $ 40,000 2017 $ b. Sum-of-the-years'-digits method 2016 $ 193,333 X 2017 $ c. Double-declining-balance method 2016 $ 2017 $ H Artivity method haced on hours worked Next Previous Check My Work 11:17 PM 71 F Sunny 11/11/2021
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