Problem: Module $2$ Textbook Problem $15$

Learning Objectives:

$2-10$ Calculate double$-$declining$-$balance depreciation and show how it affects financial statements

$2-11$ Calculate units$-$of$-$production depreciation and show how it affects financial statements

$2-12$ Show how gains and losses on disposals of long$-$term operational assets affect financial statements

Exact Photo Service purchased a new color printer at the beginning of Year $1$ for $$39,900.$ The printer is expected to have a four$-$year

useful life and a $$3,990$ salvage value. The expected print production is estimated at $1,500,000$ pages. Actual print production for the

four years was as follows:

The printer was sold at the end of Year $4$ for $$4,290.$

Required

a$.$ Compute the depreciation expense for each of the four years, using double$-$declining$-$balance depreciation.

b$.$ Compute the depreciation expense for each of the four years, using units$-$of$-$production depreciation.

c$.$ Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Compute the depreciation expense for each of the four years, using units$-$of$-$production depreciation. $($Round cost per unit to

three decimal places. Round other intermediate calculations and your final answers to the nearest dollar.$)$