OBrian Service Company purchased a copier on January 1,2008, for ($17,000) and paid an additional ($200) for
Question:
O’Brian Service Company purchased a copier on January 1,2008, for \($17,000\) and paid an additional \($200\) for delivery charges. The copier was estimated to have a life of four years or 800,000 copies. Salvage was estimated at \($1,200\) . The copier produced 230,000 copies in 2008 and 250,000 copies in 2009.
Required:
Compute the amount of depreciation expense for the copier for calendar years 2008 and 2009, using these methods:
a. Straight-line.
b. Units-of-production.
c. Double-declining-balance.
d. MACRS, assuming that the copier is classified as five-year property'.
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