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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

  1. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation.
  2. Compute the depreciation expense for each of the four years, using units-of-production depreciation.
  3. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.

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