Graphics Service Co. purchased a new color copier at the beginning of 2013 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:
2013 ........ 560,000
2014 ........ 490,000
2015 ........ 430,000
2016 ........ 350,000
2017 ........ 210,000
Total ........ 2,040,000
The copier was sold at the end of 2017 for $7,600.
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. (Round cost per unit to three decimal places.)
c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.