Exact Photo Service purchased a new color printer at the beginning of 2016 for $

Question

Exact Photo Service purchased a new color printer at the beginning of 2016 for $38,000. 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:

The printer was sold at the end of 2019 for $1,650.

A.Compute the depreciation expense for each of the four years, using double-declining-balance depreciation.

2016:

2017:

2018:

2019:

Total accumlated depreciated:

B.Compute the depreciation expense for each of the four years, using units-of-production depreciation.

2016:

2017:

2018:

2019:

Total accumlated depreciated:

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

DDB:

Units-of-production

Exact Photo Service purchased a new color printer at the beginning of 2016 for $38,000. 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:

Explanation / Answer

Cost          38,000.00 Life   4 Years Double decling balance method rate = 25%*2 50% Particulars 2016 2017 2018 2019 Total Depreciation Opening Balance          38,000.00           19,000.00                      9,500.00                 4,750.00 Depreciation@50%          19,000.00              9,500.00                      4,750.00                 1,250.00                       34,500.00 Closing balance          19,000.00              9,500.00                      4,750.00                 3,500.00 Units of production Cost of Machine          38,000.00 Salvage Value            3,500.00 Life in Units    1,500,000.00 Particulars 2016 2017 2018 2019 Total Depreciation Opening Balance          38,000.00           29,030.00                    19,600.00                 9,940.00 Units of production        390,000.00         410,000.00                 420,000.00             300,000.00 Depreciation(Units/1,500,000)*34500            8,970.00              9,430.00                      9,660.00                 6,440.00                       34,500.00 Closing balance          29,030.00           19,600.00                      9,940.00                 3,500.00 Under each of the method Loss would be 3500 - 1650= 1850

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.