Kate's Photo Service purchased a new color printer at the beginning of 2011 for \(\$ 28,000\). The printer is expected to have a four-year useful life and a \(\$ 2,000\) salvage value. The expected print production is estimated at \(1,300,000\) pages. Actual print production for the four years was as follows:

The printer was sold at the end of 2014 for \(\$ 1,500\).
Required

a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation

b. Compute the depreciation expense for each of the four 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.

Transcribed Image Text:

2011 350,000 2012 370,000 2013 280,000 2014 320,000 Total 1,320,000