Exact Photo Service pur ised a new 2818 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 3 384,500 Year 4 389,800 1,806,100 Total The printer was sold at the end of Year 4 for $3,350. Compute the depreciation expense for each of the four years, using units-of-production depreciation.
Exact Photo Service pur ised a new 2818 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 3 384,500 Year 4 389,800 1,806,100 Total The printer was sold at the end of Year 4 for $3,350. Compute the depreciation expense for each of the four years, using units-of-production depreciation.
Chapter1: Financial Statements And Business Decisions
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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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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 3
384,500
Year 4
389,800
Total
1,806,100
The printer was sold at the end of Year 4 for $3,350.
b. Compute the depreciation expense for each of the four years, using units-of-production depreciation.
Note: Round cost per unit to three decimal places and final answers to the nearest whole dollar amount.
Depreciation
Expense
Year 1
Year 2
Year 3
Year 4
Total accumulated depreciation](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58960793-fd35-4e19-b57e-4a84eb1f0939%2F78e867fe-29b6-4df3-ad8c-29eae0db1530%2Fltihhas_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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 3
384,500
Year 4
389,800
Total
1,806,100
The printer was sold at the end of Year 4 for $3,350.
b. Compute the depreciation expense for each of the four years, using units-of-production depreciation.
Note: Round cost per unit to three decimal places and final answers to the nearest whole dollar amount.
Depreciation
Expense
Year 1
Year 2
Year 3
Year 4
Total accumulated depreciation
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