CP 82

Ekman Corporation purchased a new laser printer to be used in its business.

I have attached the full question and workbook for the answers to be filled into below. The answers must be put into this workbook format or I won't understand them. Also, I can't understand handwriting that's not my own that well, so if you must give me handwritten answers, please only print and make it very understandable. Thank you!

CP 8-2 Ekman Corporation purchased a new laser printer to be used in its business. The printer had a list price of $4,000, but Ekman was able to purchase it for $3,250. The company expects it to have a useful life of five years, with an estimated salvage value of $250. Ekman is paying the delivery costs of $100, set-up and debugging costs of $300, and the costs of purchasing an appropriate table for $50. There was sales tax of 10 per cent on the purchase price of the printer but not on the other costs. Required 1. Calculate the total cost of the laser printer. 2. Ekman management asks you whether the straight-line or double- declining balance method of depreciation would be most appropriate for the printer. Provide calculations to support your answer. Assume the company uses the year rule to calculate depreciation expense in the year of acquisition and disposal. CP 8-2 ear Straight-line Conclusion