Question: Graphics Service Co purchased a new color copier at the

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.

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. (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.


View Solution:


Sale on SolutionInn
Sales4
Views451
Comments
  • CreatedOctober 26, 2013
  • Files Included
Post your question
5000