Central Supply purchased a new printer for $64,125. The printer is expected to operate for nine (9)
Question:
Central Supply purchased a new printer for $64,125. The printer is expected to operate for nine (9) years, after which it would be sold for salvage value (estimated to be $6,435).
Required:
a)How much is the first year’s depreciation expense if the company uses the double-declining-balance method?
b) How much is the second year’s depreciation expense if the company uses the double-declining-balance method?
c) Assume that at the beginning of the third year Central Supply decided to go digital and sold the printer for $46,000, prepare a journal entry to record the sale.
d) Had the Central Supplies used straight-line depreciation method, what would have been the gain or loss when the printer was disposed after two years?
Managerial economics applications strategy and tactics
ISBN: 978-1439079232
12th Edition
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris