c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods. Double-declining-balance Units-of-production
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![[The following information applies to the questions displayed below.]
Exact Photo Service purchased a new color printer at the beginning of Year 1 for $39,100. The printer is expected to have a
four-year useful life and a $3,200 salvage value. The expected print production is estimated at $1,777,100 pages. Actual
print production for the four years was as follows:
Year 1
548,700
Year 2
483,100
Year 31
384,500
Year 4
389,800
1,806,100
Total
The printer was sold at the end of Year 4 for $3,350.
c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.
Double-declining-balance
Units-of-production](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb1762c93-89f8-4962-8528-20993e157515%2F737075df-edb0-40fb-ac7d-0635ce881dc4%2Fw0b5rmm_processed.jpeg&w=3840&q=75)
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