Question
On March 1, 2015, Copy Line paid $102,000 for a new copy machine.It was estimated that the machine would produce 850,000 copies over the next
On March 1, 2015, Copy Line paid $102,000 for a new copy machine.It was estimated that the machine would produce 850,000 copies over the next 5 years, at which time it could be sold for $17,000.The copy machine made the following amount of copies during its life:
2015110,000 copies
2016168,000 copies
2017154,000 copies
2018143,000 copies
201987,500 copies
It was sold on June 1, 2019 for $18,500.
1.Assuming Copy Line uses the Double-Declining Balance method of depreciation, calculate 2018 depreciation expense:
a.$7,480
b.$9.792
c.$14,300
d.$17,300
e.$34,000
2.Assuming instead, that Copy Line uses the Unit of Production method of depreciation, calculate the amount in Copy Line's accumulated depreciation account as of 12/31/17 (after adjustments):
a.$15,400
b.$18,480
c.$38,617
d.$43,200
e.$51,840
PLEASE PROVIDE EXPLANATION
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