Question
Exact Photo Service purchased a new color printer at the beginning of Year 1 for $41,300. The printer is expected to have a four-year useful
Exact Photo Service purchased a new color printer at the beginning of Year 1 for $41,300. The printer is expected to have a four-year useful life and a $4,130 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows:
Year 1 | 546,400 |
Year 2 | 480,700 |
Year 3 | 383,100 |
Year 4 | 392,900 |
Total | 1,803,100 |
The printer was sold at the end of Year 4 for $4,530.
Required
Compute the depreciation expense for each of the four years, using double-declining-balance depreciation.
Compute the depreciation expense for each of the four years, using units-of-production depreciation.
Calculate the amount of gain or loss from the sale of the asset under each of the depreciation method
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