Print Service Co. purchased a new color copier at the beginning of 2005 for \($35,000\) . The copier is expected to have a five-year useful life and a \($5,000\) salvage value. The expected copy production was estimated at 2,000,000 copies. Actual copy production for the five years was as follows:

The copier was sold at the end of 2009 for \($5,200\) .

Required:

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

b. Compute the depreciation expense for each of the five years, using units-of-production deprecia¬ tion. (Round cost per unit to three decimal places.)

c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.

Transcribed Image Text:

2005 550,000 2006 480,000 2007 380,000 2008 390,000 2009 240,000 Total 2,040,000