Gruman Company purchased a machine for $220,000 on January 2, 2019. It made the following estimates: Service life 5 years or 10,000 hours Production 200,000 units Residual value $20,000 In 2019, Gruman uses the machine for 1,800 hours and produces 44,000 units. In 2020, Gruman uses the machine for 1,500 hours and produces 35,000 units. If required, round your final answers to the nearest c Required: 1. Compute the depreciation for 2019 and 2020 under each of the following methods: a. Straight-line method 40,000 2019 $ 2020 $ 40,000 b. Sum-of-the-years'-digits method 2019 $ 2020 $

Gruman Company purchased a machine for $220,000 on January 2, 2019. It made the following estimates: Service life 5 years or 10,000 hours Production 200,000 units Residual value $20,000 In 2019, Gruman uses the machine for 1,800 hours and produces 44,000 units. In 2020, Gruman uses the machine for 1,500 hours and produces 35,000 units. If required, round your final answers to the nearest c Required: 1. Compute the depreciation for 2019 and 2020 under each of the following methods: a. Straight-line method 40,000 2019 $ 2020 $ 40,000 b. Sum-of-the-years'-digits method 2019 $ 2020 $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please answer, round off final answers to two decimal places
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Odell purchased a used van for use in its business on January 1, 2020. It paid $14,000 for the van. Odell expects the van to have a useful life of four years, with an estimated residual value of $1,100. Odell expects to drive the van 18,000 miles during 2020, 16,000 miles during 2021, 9,000 miles in 2022, and 8,600 miles in 2023, for total expected miles of 51,600. Read the requirements. (Complete all input fields. Enter a 0 for any zero values.) Year Start 2020 2021 2022 2023 Straight-line method Annual Depreciation Accumulated Expense Depreciation Book Value
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