Exact Photo Service purchased a new color printer at the beginning of Year 1 for $42,200. The printer is expected to have a four-year useful life and a $4,220 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows: Year 1 Year 2 Year 3 Year 4 Total 548,000 481,000 384,700 389,000 1,802,700 The printer was sold at the end of Year 4 for $4,570. Required Compute the depreciation expense for each of the four years, using double- declining-balance depreciation. Year 1___ Year2___ Year3 Year4 Compute the depreciation expense for each of the four years, using units-of- production depreciation. Year 1 Year2 Year3 Year4 Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods. Depreciation Methods Amount Effect Double-Declinging Balance __?_ __?__ ?__ Units-of-Production ___?__

Exact Photo Service purchased a new color printer at the beginning of Year 1 for $42,200. The printer is expected to have a four-year useful life and a $4,220 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows: Year 1 Year 2 Year 3 Year 4 Total 548,000 481,000 384,700 389,000 1,802,700 The printer was sold at the end of Year 4 for $4,570. Required Compute the depreciation expense for each of the four years, using double- declining-balance depreciation. Year 1_ Year2_ Year3 Year4 Compute the depreciation expense for each of the four years, using units-of- production depreciation. Year 1 Year2 Year3 Year4 Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods. Depreciation Methods Amount Effect Double-Declinging Balance __?_ ? ? Units-of-Production _?__

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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