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Exact Photo Service purchased a new color printer at the beginning of Year 1 for $39,600. The printer is expected to have a four-year
Exact Photo Service purchased a new color printer at the beginning of Year 1 for $39,600. The printer is expected to have a four-year useful life and a $3,960 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows: Year 1 546,000 Year 2 478,900 Year 3 381,500 Year 4 391,800 Total 1,798,200 The printer was sold at the end of Year 4 for $4,160. Required a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation. b. Compute the depreciation expense for each of the four years, using units-of-production depreciation. c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods. Required A Required B Required C Compute the depreciation expense for each of the four years, using double-declining-balance depreciation. (Do not round your intermediate calculations. Round final answers to the nearest whole dollar amount.) Double- Declining Balance Year $ 19,800 1X2X3 Year 69 9,900 Year $ 4,950 Year S 3,960 4 Required A Required B Required C the tabs below. Compute the depreciation expense for each of the four years, using units-of-production depreciation. (Round cost per unit to three decimal places. Round other intermediate calculations and your final answers to the nearest dollar) Units-of- Production Year 1 $ 12,973 Year 2 $ 15,248 Year 3 $ 6,184 Year 4 $ 3,960 < Required A Required C > Required A Required B Required C Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods. (Amounts to be deducted should be indicated with minus sign.) Depreciation Methods Amount Double-Declining Balance Units-of-Production Effect < Required B Required C>
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