Exact Photo Service purchase a new color printer at the beginning of 2019 for $28,000. The printer
Fantastic news! We've Found the answer you've been seeking!
Question:
Exact Photo Service purchase a new color printer at the beginning of 2019 for $28,000. The printer is expected to have a four-year useful life and a $3,500 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows:
Year | Pages Printed |
2018 | 390,000 |
2019 | 410,000 |
2020 | 400,000 |
2021 | 300,000 |
The printer was sold at the end of 2021 for $1,650.
- Compute the depreciation expense, accumulated depreciation and book value each year of the four years using the straight-line method.
- Compute the depreciation expense, accumulated depreciation and book value each year of the four years, using the units-of-production method.
- Calculate the amount of gain or loss from the sale of the asset.
- Record the 2021 depreciation expense and sale of the printer in the horizontal statements model for both the straight-line and units-of-production methods:
Event | Assets | Liab | Equity | Rev | Exp | Net Inc. | Cash Flow | ||
Cash | Printer | Accum. Depr. | |||||||
Straight-line Method | |||||||||
2021 Depreciation | |||||||||
Sale of Printer | |||||||||
Units-of-production Method | |||||||||
2021 Depreciation | |||||||||
Sale of Printer |
Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
Posted Date: