Question
Exact Photo Service purchased a new color printer at the beginning of Year 1 for $40,600. 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 $40,600. The printer is expected to have a four-year useful life and a $4,060 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 | 548,400 |
Year 2 | 477,300 |
Year 3 | 379,200 |
Year 4 | 385,300 |
Total | 1,790,200 |
The printer was sold at the end of Year 4 for $4,310.
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 methods.
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