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q1 Regarding #1, top row possible answers can be: Cost Depreciable Cost Estimated Life Salvage Value Paper Printing Company purchased a copy machine for $65,000
q1
Regarding #1, top row possible answers can be:
Cost
Depreciable Cost
Estimated Life
Salvage Value
Paper Printing Company purchased a copy machine for $65,000 on 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. = Depreciation expense Year 2010 2011 2. Which method portrays the actual use of this asset more accurately? Explain your answer. When using straight-line depreciation the depreciation expense . Straight-line depreciation assumes that the asset will be used every year. Activity depreciation is also known as V. The activity method depends on the V number of units produced
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