Exact Photo Service purchased a new color printer at the beginning of Year 1 for $35,350. The printer is expected to have a four-year useful life and a $3,800 salvage value. The expected print production is estimated at $1,773,800 pages. Actual print production for the four years was as follows: Year 1 Year 2 554,300 484,000 377,200 387,300 1,802,800 Year 3 Year 4 Total The printer was sold at the end of Year 4 for $4,050. Exercise 8-10A Part b p. Compute the depreciation expense for each of the four years, using units-of-production depreciation. (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

Exact Photo Service purchased a new color printer at the beginning of Year 1 for $35,350. The printer is expected to have a four-year useful life and a $3,800 salvage value. The expected print production is estimated at $1,773,800 pages. Actual print production for the four years was as follows: Year 1 Year 2 554,300 484,000 377,200 387,300 1,802,800 Year 3 Year 4 Total The printer was sold at the end of Year 4 for $4,050. Exercise 8-10A Part b p. Compute the depreciation expense for each of the four years, using units-of-production depreciation. (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

Name: Exercise 8-10A Double-declining-balance and units-of-production depre
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Exercise 8-10A Double-declining-balance and units-of-production depreciation: gain or loss on disposalLO 8-3, 8-4(The following information applies to the questions displayed below.)Exact Photo Service purchased a new color printer at the beginning

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Required information [The following information applies to the questions displayed below.]…

A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…

Q: Determine the machines' second year depreciation under the straight-line method.

A: The expected decline in the value of a fixed asset over the course of its use is called…

Q: Required information [The following information applies to the questions displayed below.] One Stop…

A: solutiongivenCost of machine$108000Residual value27000Useful life4 yearsWorking note :Double…

Q: SPI Ltd. purchased new excavating equipment at the beginning of Year 1. The equipment has a cost of…

A: The drop in the book value of fixed assets that results from depreciation is called "amortization."…

Q: [The following information applies to the questions displayed below.] University Car Wash purchased…

A: Depreciation is an expense charged to profit and loss accounts on fixed assets. Depreciation expense…

Q: University Car Wash purchased new soap dispensing equipment that cost $246,000 including…

A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…

Q: Assume Plain Ice Cream Company, Incorporated, in Ithaca, NY, bought a new ice cream production kit…

A: Depreciation expense:— It is the allocation of depreciable cost of asset over the estimated useful…

Q: Exact Photo Service purchased a new color printer at the beginning of Year 1 for $36,660. The…

A: Spreading an asset's cost across its useful life, such as a machine, is called depreciation. It…

Q: Oki Company pays $293,750 for equipment expected to last four years and have a $30,000 salvage…

A: Capital and Revenue Expenditure - Capital expenditure is an expense which increase the earning…

Q: c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation…

A: Depreciation is an accounting practice that distributes the expense of tangible assets throughout…

Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…

A: Units produced in year 1 = Total units/useful life. = 399,000/10 =39900 units

Q: Lord Company purchased a machine on January 2, Year 1, for $70,000. The machine had an expected…

A: Depreciation -Depreciation is the reduction in a tangible asset's price that occurs when the asset…

Q: Required information [The following information applies to the questions displayed below.] Cheetah…

A: Depreciation can be defined as decrease in the book value of an asset each year.

Q: Blue Jays Lawn Care purchased new excavating equipment at the beginning of Year 1. The equipment has…

A: Double declining balance if one of a method used to calculate depreciation, under this method the…

Q: Required information [The following information applies to the questions displayed below] Ramirez…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. Different methods…

Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of…

Q: A company purchased machinery for $ 200,000 on 1st January . It has an estimated useful life of 10…

A: Formula: Depreciation per unit = ( Asset cost - salvage value ) / Total estimated units

Q: Exact Photo Service purchased a new color printer at the beginning of Year 1 for $38,000. The…

A: Depreciation per page = (Cost of the assets - Residual value) / Expected production…

Q: Calculate annual depreciation expense using the straight-line, units-of-production, and…

A: Depreciation expense :—It is the allocation of depreciable cost of asset over the estimated useful…

Q: Assume that an asset costing $72,000 is expected to produce 500,000 units and have a salvage value…

A: Solution: Depreciation expense per unit = (Cost - salvage value) / total units = (72000 - 6000)/…

Q: Assume Plain Ice Cream Company, Incorporated, in Ithaca, NY, bought a new ice cream production kit…

A: Depreciation is referred to a method of expensing the cost of a capital asset over its useful life.…

Concept explainers

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.

Topic Video

Question

Exercise 8-10A Double-declining-balance and units-of-production depreciation: gain or loss on disposal
LO 8-3, 8-4
(The following information applies to the questions displayed below.)
Exact Photo Service purchased a new color printer at the beginning of Year 1 for $35,350. The printer is expected to have
a four-year useful life and a $3,800 salvage value. The expected print production is estimated at $1,773,800 pages. Actual
print production for the four years was as follows:
554,300
484,000
377,200
387,300
Year 1
Year 2
Year 3
Year 4
Total
1,802,800
The printer was sold at the end of Year 4 for $4,050.
Exercise 8-10A Part b
b. Compute the depreciation expense for each of the four years, using units-of-production depreciation. (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
24
Total accumulated depreciation

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

i need the answer quickly
Use the following information for the Quick Studies below. (Algo) Skip to question [The following information applies to the questions displayed below.]Equipment costing $60,000 with a 4-year useful life and an estimated $10,000 salvage value is acquired and started operating on January 1. The equipment is estimated to produce 5,000 units of product during its life. It produced 750 units in the first year. QS 8-8 (Algo) Recording depreciation journal entries LO P1 Record the journal entries for equipment depreciation for the first year under straight-line, units-of-production, and double-declining-balance.
Troy Industries purchased a new machine 2 year(s) ago for $78,000. It is being depreciated under MACRS with a 5-year recovery period using the schedule Recovery year 3 years 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 12% 5 12% 9% 9% 6 5% 9% 8% 7 9% 7% 8 4% 6% 9 6% 10 6% 11 4% Totals 100% 100% 100%…
! Required information [The following information applies to the questions displayed below.] Exact Photo Service purchased a new color printer at the beginning of Year 1 for $36,110. The printer is expected to have a four-year useful life and a $3,800 salvage value. The expected print production is estimated at $1,781,500 pages. Actual print production for the four years was as follows: Year 1 Year 2 Year 3 Year 4 Total 550,700 481,800 376,300 394,700 1,803,500 The printer was sold at the end of Year 4 for $4,100. Required: a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Year 1 Year 2 Year 3 Year 4 Total accumulated depreciation Depreciation Expense
Required information [The following information applies to the questions displayed below.] Exact Photo Service purchased a new color printer at the beginning of Year 1 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. Year 1 Year 2 Year 3 Year 4 390,000 410,000 420,000 300,000 Total 1,520,000 The printer was sold at the end of Year 4 for $1,650. 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
Your business buys a copy machine for $8,000 on January 1. You estimate that the copy machine will produce 350,000 copies during its useful life; its salvage value after producing the 350,000 copies is projected to be $1,000. The copy machine produced 75,200 copies in year 1 and 68,300 copies in year 2. Calculate depreciation for each of the first two years using the units-of-production method.
Equipment purchased 2 years ago by Newport Corporation to make pneumatic vibration isolators cost $110,500. It has a market value that can be described by the relation $110,500 – $8,600k, where k is the years from time of purchase. The operating cost for the first 5 years is $63,000 per year, after which it increases by $6,800 per year. The asset's salvage value was originally estimated to be $7000 after a predicted 10-year useful life. Determine the values of P, S, and AOC if (a) a replacement study is done now and it is assumed that the equipment will be kept a maximum of one more year, and (b) a replacement study is done 5 years from now and it is assumed that the equipment will be kept a maximum of only one more year after that. a) The value of Pis $ The value of S is $ The value of AOC is $ b) The value of Pis $ The value of S is $ The value of AOC is $
[The following information applies to the questions displayed below.] Quick Copy purchased a new copy machine. The new machine cost $106,000 including installation. The company estimates the equipment will have a residual value of $26,500. Quick Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year Hours Used 1 2,800 2 2,000 3 2,000 4 3,200 Problem 7-5B (Algo) Part 3 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations. Round answers to the nearest whole dollar.) > Answer is complete but not entirely correct. QUICK COPY Depreciation Schedule-Activity-Based End of Year Amounts Depreciation Accumulated Year 1 Book Value Expense Depreciation $ 27,825 $ 27,825 $ 78,175 2 19,876 47,700 58,325 X 3 19,876 67,575 38,450 x 4 31,800 x 99,375 5,125 x Total $ 99,377
Required information [The following information applies to the questions displayed below.] University Car Wash purchased new soap dispensing equipment that cost $249,000 including installation. The company estimates that the equipment will have a residual value of $25,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year 1 2 Year 1 2 3 4 5 6 Total 23456 3 4 5 6 Hours Used 2,900 1,800 1,900 2,100 1,900 1,900 2. Prepare a depreciation schedule for six years using the double-declining- balance method. (Do not round your intermediate calculations.) UNIVERSITY CAR WASH Depreciation Schedule-Double-Declining-Balance End of Year Amounts Depreciation Accumulated Expense Depreciation Book Value
build a modelA purchased machine cost $320,000, with delivery and installation charges amounting to $30,000. The declared salvage value was $50,000. Its useful life is 10 years. a) Compute the SL depreciation schedule over its useful life. b) Compute the DDB depreciation schedule over its useful life. c) Compute the MACRS depreciation schedule. Its ADR life is 12 years. d) Early in Year 4, the company changed its product mix and found that it no longer needed the machine. One of its competitors agreed to buy the machine for $110,000. Determine the loss, gain, or recapture on the sale. Use the MACRS schedule
None