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Exact Photo Service purchased a new color printer at the beginning of Year 1 for $40,400. 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 $40,400. The printer is expected to have a four-year useful life and a $4,040 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 | 545,800 |
Year 2 | 476,500 |
Year 3 | 378,900 |
Year 4 | 385,300 |
Total | 1,786,500 |
The printer was sold at the end of Year 4 for $4,340.
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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