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 692,300 pages in 2019. Do not round intermediate calculations. If required, round your answers to the nearest whole dollar.

Compute 2019 depreciation expense using the:

Straight-line method:

Double-declining-balance method:

Units-of-production method

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

Straight-line method:

Double-declining-balance method:

Units-of-production method:

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 692,300 pages in 2019. Do not round intermediate calculations. If required, round your answers to the nearest whole dollar. 1. Compute 2019 depreciation expense using the: 2019 a. Straight-line method b. Double-declining-balance method c. Units-of-production method 2. What is the book value of the machine at the end of 2019 under each method? Book Value a. Straight-line method 152,025 b. Double-declining-balance method

Explanation / Answer

Compute 2019 depreciation expense using the:

Straight line method = (171600-15000)/8 = 19575

Double decline balance method = 171600*25% = 42900

Unit of production method = (171600-15000/4500000)*692300 = 24092

Book value at the end of 2019 :

Straight line method = 171600-19575 = 152025

Double decline balance method = 171600-42900 = 128700

Unit of production method = 171600-24092 = 147508

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