Chapter 11- CengageNoWv2 | Online teac x Cengage leaming G S1000 tirmes! takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false ☆) *司 еBook Show Me How...

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


Extracted text: 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