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Bao Wao Designs Inc. purchased a computerized blueprint printer that will assist in the design and display of plans for factory layouts. The cost of
Bao Wao Designs Inc. purchased a computerized blueprint printer that will assist in the design and display of plans for factory layouts. The cost of the printer was exist22, 500, and its expected useful life is four years. The company can probably sell the printer for exist2, 500 at the end of four years. The printer is expected to last 6,000 hours. It was used 1, 200 hours in year 1: 1, 800 hours in year 2: 2, 400 hours in year 3: and 600 hours in year 4. a. Compute the annual depreciation and carrying value for the new blueprint printer for each of the four years under the straight-line method. b. Compute the annual depreciation and carrying value for the new blueprint printer for each of the four years under the production method. Do not round your intermediate calculations. c. Compute the annual depreciation and carrying value for the new blueprint printer for each of the four years under the double-declining-balance method. Round your answer to the nearest dollar. If the printer is sold for exist12,000 after year 2, what would be the gain or loss under each method? A. Straight-line: B. Production: C. Double-declining-balance
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