Required information [The following information applies to the questions displayed below.] Exact Photo Service purchased a new
Question:
Required information [The following information applies to the questions displayed below.] Exact Photo Service purchased a new color printer at the beginning of Year 1 for $39,320. The printer is expected to have a four-year useful life and a $3,700 salvage value. The expected print production is estimated at $1,778,400 pages. Actual print production for the four years was as follows: Year 1 555,000 Year 2 482,200 Year 3 375,700 Year 4 388,500 Total 1,801,400 The printer was sold at the end of Year 4 for $3,850.
Required a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
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Compute the depreciation expense for each of the four years, using units-of-production depreciation. (Round cost per unit to three decimal places and final answers to the nearest whole dollar amount.)
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c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.
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Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds