niki.2 Exact Photo Service purchased a new color printer at the beginning of Year 1 for $40,200. The printer is expected to have a four-yearuseful life and a $4,020 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for thefour years is as follows:554,400Year 1Year 2481,200Year 3378,400Year 4392,900TotalS1,806,900The printer was sold at the end of Year 4 for $4,270.Requireda. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation.b. Compute the depreciation expense for each of the four years, using units-of-production depreciation.c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.Complete this question by entering your answers in the tabs below.Required A Required B Required CCompute the depreciation expense for each of the four years, using double-declining-balance depreciation.Note: Do not round your intermediate calculations. Round final answers to the nearest whole dollar amount.Double-DecliningBalanceYear 1Year 2Year 3Year 4

a).Computation of Depreciation using Double Declining Balance method : YearBeginning Book ValueDep…

Answered: Exact Photo Service purchased a new…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 5P

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Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.
A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.
Exact Photo Service purchased a new color printer at the beginning of Year 1 for $40,600. The printer is expected to have a four-year useful life and a $4,060 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows: Year 1 549,200 Year 2 476,900 Year 3 383,100 Year 4 393,600 Total 1,802,800 The printer was sold at the end of Year 4 for $4,460. Required Compute the depreciation expense for each of the four years, using double-declining-balance depreciation. Compute the depreciation expense for each of the four years, using units-of-production depreciation. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.
Exact Photo Service purchased a new color printer at the beginning of Year 1 for $37,300. The printer is expected to have a four-year useful life and a $3,900 salvage value. The expected print production is estimated at $1,774,500 pages. Actual print production for the four years was as follows: Year 1 552,700 Year 2 482,600 Year 3 378,000 Year 4 386,200 Total 1,799,500 The printer was sold at the end of Year 4 for $4,150. Required: a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation
exact photo service purchased a new color printer at the beginning of year 1 for $36,790. The printer is expected to have a four year useful life and a $3,600 salvage value. The expected print production is estimated at $1,773,200 pages. Actual print production for the four years was as follows: year one: 548,800 year two: 475,400 year three: 385,000 year four: 386,000 total: 1,795,200 The printer was sold at the end of year 4 for $3,850. Compute the depreciation expense for each of the four years, using double declining balance depreciation.
exact photo service purchased a new color printer at the beginning of year 1 for $36,790. the printer is expected to have a four year useful life and a $3,600 salvage value. The expected print production is estimated at 1,773,200 pages. actual print production for the four years was as follows: year 1: 548,800 year 2: 475,400 year 3: 385,000 year 4: 386,000 total: 1,795,200 The printer was sold at the end of year 4 for $3850. Compute the depreciation expense for each of the four years, using units of production depreciation.
exact photo service purchased a new color printer at the beginning of year 1 for $36,790. The printer is expected to have a four year useful life and $3,600 salvage value. The expected print production is estimated at 1,773,200 pages. Actual print production for the four years was as follows: year 1: 548,800 year 2: 475,400 year 3: 385,000 year 4: 386,000 total: 1,795,200 the printer was sold at the end of year 4 for $3850. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.
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xact 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 1 390,000 Year 2 410,000 Year 3 420,000 Year 4 300,000 Total 1,520,000 The printer was sold at the end of Year 4 for $1,650. Requireda. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation.
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! 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

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