Sure Shot Photo Service purchased a new color printer at the beginning of 2013 for $42,000. The printer is expected to have a four-year useful life and a $2,000 salvage value. The expected print production is estimated at 1,600,000 pages. Actual print production for the four years was as follows:
2013 ....... 370,000
2014 ....... 410,000
2015 ....... 420,000
2016 ....... 430,000
Total ...... 1,630,000
The printer was sold at the end of 2016 for $1,600.
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.