Question
Graphics Service Co. purchased a new color copier at the beginning of 2014 for $47,000. The copier is expected to have a five year useful
Graphics Service Co. purchased a new color copier at the beginning of 2014 for $47,000. The copier is expected to have a five year useful life and a $7,000 salvage value. The expected copy production was estimated at 2,000,000 copies. Actual copy production for the five years was as follows.
2014- 560,000
2015- 490,000
2016- 430,000
2017- 350,000
2018- 210,000
Total- 2,040,000
A-) Compute the depreciation expense for each of the five years, using double-declining-balance depreciation.
2014- $18,800
2015- $11,280
2016- ?
2017- ?
2018- ?
B-) Compute the depreciation expense for each of the five years, using units-of-production depreciation.
2014- $11,200
2015- $9,800
2016-?
2017-?
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