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Exact Photo Service purchased a new color printer at the beginning of Year 1 for $40,400. The printer is expected to have a four-year useful life and a $4,040 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows: Year 1 554,200 Year 2 481,600 Year 3 382,100 Year 4 Total 391,900 1,809,800 The printer was sold at the end of Year 4 for $4,140. Required a. 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the depreciation expense for each of the four years, using units-of-production depreciation. Note: Round cost per unit to three decimal places. Round other intermediate calculations and your final answers to the nearest dollar. Units-of- Production Year 1 $ 13,397 x Year 2 $ 11,674 × Year 3 $ 9,262 Year 4 $ 9,500 x < Required A Required C >

Exact Photo Service purchased a new color printer at the beginning of Year 1 for $40,400. The printer is expected to have a four-year useful life and a $4,040 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows: Year 1 554,200 Year 2 481,600 Year 3 382,100 Year 4 Total 391,900 1,809,800 The printer was sold at the end of Year 4 for $4,140. Required a. 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the depreciation expense for each of the four years, using units-of-production depreciation. Note: Round cost per unit to three decimal places. Round other intermediate calculations and your final answers to the nearest dollar. Units-of- Production Year 1 $ 13,397 x Year 2 $ 11,674 × Year 3 $ 9,262 Year 4 $ 9,500 x < Required A Required C >

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....
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Exact Photo Service purchased a new color printer at the beginning of Year 1 for $40,400. The printer is expected to have a four-year useful life and a $4,040 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows: Year 1 554,200 Year 2 481,600 Year 3 382,100 Year 4 Total 391,900 1,809,800 The printer was sold at the end of Year 4 for $4,140. Required a. 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the depreciation expense for each of the four years, using units-of-production depreciation. Note: Round cost per unit to three decimal places. Round other intermediate calculations and your final answers to the nearest dollar. Units-of- Production Year 1 $ 13,397 x Year 2 $ 11,674 × Year 3 $ 9,262 Year 4 $ 9,500 x < Required A Required C >
Transcribed Image Text:Exact Photo Service purchased a new color printer at the beginning of Year 1 for $40,400. The printer is expected to have a four-year useful life and a $4,040 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows: Year 1 554,200 Year 2 481,600 Year 3 382,100 Year 4 Total 391,900 1,809,800 The printer was sold at the end of Year 4 for $4,140. Required a. 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the depreciation expense for each of the four years, using units-of-production depreciation. Note: Round cost per unit to three decimal places. Round other intermediate calculations and your final answers to the nearest dollar. Units-of- Production Year 1 $ 13,397 x Year 2 $ 11,674 × Year 3 $ 9,262 Year 4 $ 9,500 x < Required A Required C >
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