Depreciation Methods Clearcopy, a printing company, acquired a new press on Janu

Question

Depreciation Methods

Clearcopy, a printing company, acquired a new press on January 1, 2019. The press cost $171,600 and had an expected life of 8 years or 4,500,000 pages and an expected residual value of $15,000. Clearcopy printed 707,600 pages in 2019. Do not round intermediate calculations. If required, round your answers to the nearest whole dollar.

Required:

1. Compute 2019 depreciation expense using the:

2. What is the book value of the machine at the end of 2019 under each method?

Explanation / Answer

1 Straight-line method 19575 =(171600-15000)/8 Double-declining-balance method 42900 =171600*25% Units-of-production method 24624 =(171600-15000)/4500000*707600 2 Straight-line method 152025 =171600-19575 Double-declining-balance method 128700 =171600-42900 Units-of-production method 146976 =171600-24624

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