Exact Photo Service purchased a new color printer at the beginning of Year 1 for $42,400. The printer is expectedto have a four-year useful life and a $4,240 salvage value. The expected print production is estimated at1,500,000 pages. Actual print production for the four years was as follows:Year 1Year 2Year 3Year 4545,300477,000375,600389,500Total1,787,400The printer was sold at the end of Year 4 for $4,490.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. Required ARequired BRequired CCompute the depreciation expense for each of the four years, usirthree decimal places. Round other intermediate calculations andUnits-of-ProductionYear 1Year 2Year 3Year 4

Depreciation rate as per DOuble declining balance method = rate of depreciation as per Straight line…

Answered: Exact Photo Service purchased a new…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exact Photo Service purchased a new color printer at the beginning of Year 1 for $39,000. The printer is expected to have a four-year useful life and a $3,900 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows: Year 1 551,300 483,700 384,700 389,600 Year 2 Year 3 Year 4 Total 1,809,300 The printer was sold at the end of Year 4 for $4.300. 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.
! 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
A machine costing $215,200 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 493,000 units of product during its life. It actually produces the following units: 123,000 in Year 1, 122,500 in Year 2, 119,800 in Year 3, 137,700 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: The machine cannot be depreciated below its estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. Note: Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar. Complete this question by entering your answers in the tabs below. Straight Line Units of Production Compute depreciation for each year (and total depreciation of all years combined) for the machine…
A machine costing $210,200 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 478,000 units of product during its life. It actually produces the following units: 121,800 in Year 1, 122,400 in Year 2, 119,600 in Year 3, 124,200 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate—this difference was not predicted. (The machine cannot be depreciated below its estimated salvage value.) Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.) ompute depreciation for each year (and total depreciation of all years combined) for the machine under the Double-declining-balance. DDB Depreciation for the…
Exact Photo Service purchased a new color printer at the beginning of Year 1 for $41,400. The printer is expected to have a four-year useful life and a $4,140 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 Total 551,500 479,600 384, 200 386,800 1,802,100 The printer was sold at the end of Year 4 for $4,590. 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.
Robinson Industries purchased a copier system with a cost of $57,000 and a salvage value estimated at $5,000. It was expected that the copier would last four years, over which time it would produce 6,500,000 copies. The copier actually produced 1,500,000 copies in year 1, 1,900,000 copies in year 2, 1,800,000 copies in Year 3, and 1,400,000 copies in Year 4. Calculate the depreciation expense, accumulated depreciation and carrying value of the asset at year-end for each of the four years using the following methods (a) straight-line method; (b) units-of-production method; (c) double-declining balance method. Straight-line Year 1 Year 2 Year 3 Year 4 Depreciation expense Accumulated Depreciation Carrying value
A machine costing $208,800 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 482,000 units of product during its life. It actually produces the following units: 122,900 in Year 1, 123,900 in Year 2, 120,100 in Year 3, 125,100 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: The machine cannot be depreciated below its estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. Note: Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar. Complete this question by entering your answers in the tabs below. Straight Line Units of Production Double declining balance Compute depreciation for each year (and total depreciation of all years…
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
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine's useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 32,500 units of product. Exercise 8-6 Double-declining-balance depreċiation LO P1 Determine the machine's second-year depreciation using the double-declining-balance method. Double-declining-balance Depreciation Choose Factors: Choose Factor(%) Annual Depreciation Expense X Depreciation expense First year's depreciation 2$ X Second year's depreciation $4 X
A machine costing $213,600 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 494,000 units of product during its life. It actually produces the following units: 121,600 in Year 1, 123,700 in Year 2, 119,700 in Year 3, 139,000 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted. Note: The machine cannot be depreciated below its estimated salvage value. Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. Note: Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar. Complete this question by entering your answers in the tabs below. Straight Line Units of Production Compute depreciation for each year (and total depreciation of all years combined) for the machine…

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