Question
Required information [The following information applies to the questions displayed below.] Exact Photo Service purchased a new color printer at the beginning of Year 1
Required information
[The following information applies to the questions displayed below.] Exact Photo Service purchased a new color printer at the beginning of Year 1 for $38,800. The printer is expected to have a four-year useful life and a $3,400 salvage value. The expected print production is estimated at $1,764,600 pages. Actual print production for the four years was as follows:
Year 1 | 547,600 | ||
Year 2 | 479,300 | ||
Year 3 | 379,100 | ||
Year 4 | 387,600 | ||
Total | 1,793,600 | ||
The printer was sold at the end of Year 4 for $3,650.
Required a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
b. Compute the depreciation expense for each of the four years, using units-of-production depreciation. (Round cost per unit to three decimal places and final answers to the nearest whole dollar amount.) c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.
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