Question: Central Supply purchased a new printer for $64,125. The printer is expected to operate for nine (9) years, after which it would be sold for

Central Supply purchased a new printer for $64,125. The printer is expected to operate for nine (9) years, after which it would be sold for salvage value (estimated to be $6,435).

Required:

a)How much is the first year’s depreciation expense if the company uses the double-declining-balance method?

b) How much is the second year’s depreciation expense if the company uses the double-declining-balance method?

c) Assume that at the beginning of the third year Central Supply decided to go digital and sold the printer for $46,000, prepare a journal entry to record the sale.

d) Had the Central Supplies used straight-line depreciation method, what would have been the gain or loss when the printer was disposed after two years?

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