Paper Printing Company purchased a copy machine for $65,000on January 1, 2010. The copy machine had an estimated useful life of five years or 1,000,000 copies. Paper Printing estimated the copy machine's salvage value to be $5,000. The company made 250,000 copies in 2010 and 190,000 copies in 2011.Requirements

1. Calculate the depreciation expense for each year using the straight line method.

		-		=		/		=	Depreciation expense
		-		=		/		=

Now we can determine the depreciation per unit. (Round to two decimal places.)

		/		=	Cost per copy
		/		=

Now that the cost per unit has been established we can now depreciate the copy machine based on the number of copies produced.

Year			x		=	Depreciation expense
2010			x		=
2011			x		=

2. Which method portrays the actual use of this asset more accurately? Explain your answer. When using straight-line depreciation the depreciation expense

is higher at the end of life of the asset is lower at the end of the life of the asset remains the same every year . Straight-line depreciation assumes that the asset will be used

equally less more every year. Activity depreciation is also known as

units of production straight line double declining balance . The activity method depends on the

actual estimated number of units produced.