Question

Design Service Co. purchased a new color copier at the beginning of 2016 for $47,000. The copier is expected to have a five-year useful life and a $7,000 salvage value. The expected copy production was estimated at 2,000,000 copies. Actual copy production for the five years was as follows:
2016 ...... 560,000
2017 ...... 490,000
2018 ....... 430,000
2019 ....... 350,000
2020 ...... 210,000
Total ...... 2,040,000
The copier was sold at the end of 2020 for $7,600.
Required
a. Compute the depreciation expense for each of the five years, using double-declining-balance depreciation.
b. Compute the depreciation expense for each of the five 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.


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  • CreatedApril 20, 2015
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