John Dorian owns Dorian’s Copy Center, which provides a 24-hour printing and copying service to the community and college students in town. The most recent industrial copy machine the company acquired was for $25,000. John estimates the residual value to be $3,000 at the end of its useful life of seven years and estimates 1,000,000 copies to be made on the machine during that time. The following shows the number of copies made during the seven years of operating the machine: Year 1—126,000 Year 2—155,000 Year 3—162,000 Year 4—133,000 Year 5—171,000 Year 6—143,000 Year 7—139,000 What is the amount of depreciation expense recorded in the second year of operations if Dorian’s Copy Center was using the units-of-production method? $2,772 $2,772 $3,410 $3,410 $3,150 $3,150 $3,875 $3,875 Question 2 What is the amount of depreciation expense is recorded in year seven of operations if Dorian’s Copy Center was using the units-of-production method? $3,058 $3,058 $2,420 $2,420 $3,475 $3,475 $0
John Dorian owns Dorian’s Copy Center, which provides a 24-hour printing and copying service to the community and college students in town. The most recent industrial copy machine the company acquired was for $25,000. John estimates the residual value to be $3,000 at the end of its useful life of seven years and estimates 1,000,000 copies to be made on the machine during that time. The following shows the number of copies made during the seven years of operating the machine: Year 1—126,000 Year 2—155,000 Year 3—162,000 Year 4—133,000 Year 5—171,000 Year 6—143,000 Year 7—139,000 What is the amount of depreciation expense recorded in the second year of operations if Dorian’s Copy Center was using the units-of-production method? $2,772 $2,772 $3,410 $3,410 $3,150 $3,150 $3,875 $3,875 Question 2 What is the amount of depreciation expense is recorded in year seven of operations if Dorian’s Copy Center was using the units-of-production method? $3,058 $3,058 $2,420 $2,420 $3,475 $3,475 $0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
John Dorian owns Dorian’s Copy Center, which provides a 24-hour printing and copying service to the community and college students in town. The most recent industrial copy machine the company acquired was for $25,000. John estimates the residual value to be $3,000 at the end of its useful life of seven years and estimates 1,000,000 copies to be made on the machine during that time. The following shows the number of copies made during the seven years of operating the machine:
Year 1—126,000
Year 2—155,000
Year 3—162,000
Year 4—133,000
Year 5—171,000
Year 6—143,000
Year 7—139,000
What is the amount ofdepreciation expense recorded in the second year of operations if Dorian’s Copy Center was using the units-of-production method?
Year 1—126,000
Year 2—155,000
Year 3—162,000
Year 4—133,000
Year 5—171,000
Year 6—143,000
Year 7—139,000
What is the amount of
-
$2,772$2,772
-
$3,410$3,410
-
$3,150$3,150
-
$3,875$3,875
Question 2
What is the amount of depreciation expense is recorded in year seven of operations if Dorian’s Copy Center was using the units-of-production method?
-
$3,058$3,058
-
$2,420$2,420
-
$3,475$3,475
-
$0
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