How do I figure out the depreciation amount for the sum of the years digit method Chapter 11-CengageNoWv2 | Online teac xCengage leamingG S1000 tirmes!takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false☆) *司еBookShow Me HowDepreciation MethodsGruman Company purchased a machine for $198,000 on January 2, 2016. It made the following estimates:Service life5 years or 10,000 hoursProduction180,000 unitsResidual value$ 18,000In 2016, Gruman uses the machine for 1,700 hours and produces 50,000 units. In 2017, Gruman uses the machine for 1,400 hours and produces30,000 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 method2016 $36,000 v2017 $36,000b. Sum-of-the-years'-digits method2016 $2017 $c. Double-declining-balance method2016 $79,2002017 $47,520d. Activity method based on hours workedPreviousNextCheck My Work

Depreciation is the expense which is recorded for the reduction in the value of asset due to its…

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How do I figure out the depreciation amount for the sum of the years digit method

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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Question

How do I figure out the depreciation amount for the sum of the years digit method

Chapter 11-
CengageNoWv2 | Online teac x
Cengage leaming
G S1000 tirmes!
takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false
☆) *司
еBook
Show Me How
Depreciation Methods
Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the following estimates:
Service life
5 years or 10,000 hours
Production
180,000 units
Residual value
$ 18,000
In 2016, Gruman uses the machine for 1,700 hours and produces 50,000 units. In 2017, Gruman uses the machine for 1,400 hours and produces
30,000 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 $
36,000 v
2017 $
36,000
b. Sum-of-the-years'-digits method
2016 $
2017 $
c. Double-declining-balance method
2016 $
79,200
2017 $
47,520
d. Activity method based on hours worked
Previous
Next
Check My Work

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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