Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. i only need number 3 section b depreciation met

i only need number 3 section B Depreciation Methods Gruman Company purchased...

90.2K

Verified Solution

Question

Accounting

image
image
i only need number 3 section B
Depreciation Methods Gruman Company purchased a machine for $198,000 on January 2, 2019. It made the following estimates: Service life Production Residual value 5 years or 10,000 hours 180,000 units $ 18,000 In 2019, Gruman uses the machine for 2,000 hours and produces 50,000 units. In 2020, Gruman uses the machine for 1,200 hours and produces 34,000 units. If required, round your final answers to the nearest dollar. Required: 1. Compute the depreciation for 2019 and 2020 under each of the following methods: a. Straight-line method 2019 $ 36,000 2020 $ 36,000 b. Sum-of-the-years'-digits method 2019 $ 60,000 2020 11,000 3. 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? Depreciation expense a. Straight-line method 2019 $ 23,625 2020 $ 23,625 b. Sum-of-the-years'-digits method 2019 $ x 2020 $ c. Double-declining-balance method 2019 $ 49,500 2020 $ 37,125

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students