Question
In: Accounting
Exact Photo Service purchased a new color printer at the beginning of Year 1 for $39,700....
Exact Photo Service purchased a new color printer at the
beginning of Year 1 for $39,700. The printer is expected to have a
four-year useful life and a $3,700 salvage value. The expected
print production is estimated at $1,770,500 pages. Actual print
production for the four years was as follows:
| Year 1 | 550,700 | ||
| Year 2 | 477,500 | ||
| Year 3 | 375,300 | ||
| Year 4 | 390,000 | ||
| Total | 1,793,500 | ||
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.
epreciation Expense
Year 1
Year 2
Year 3
Year 4
Total accumulated depreciation$0
Solutions
Expert Solution
Answer to Requirement 1:
Double Declining Depreciation Rate = 2 * Straight Line
Depreciation Rate
Straight Line Depreciation Rate = 1 / Useful Life
Straight Line Depreciation Rate = 1/ 4 = 25%
Double Declining Depreciation Rate = 2 * 25% = 50%
Depreciation for Year 1 = $39,700 * 50%
Depreciation for Year 1 = $19,850
Book Value at the end of Year 1 = $39,700 - $19,850
Book Value at the end of Year 1 = $19,850
Depreciation for Year 2 = $19,850 * 50%
Depreciation for Year 2 = $9,925
Book Value at the end of Year 2 = $19,850 - $9,925
Book Value at the end of Year 2 = $9,925
Depreciation for Year 3 = $9,925 * 50%
Depreciation for Year 3 = $4,963
Book Value at the end of Year 3 = $9,925 - $4,963
Book Value at the end of Year 3 = $4,962
Depreciation for Year 4 = $4,962 - $3,700
Depreciation for Year 4 = $1,262
Total Accumulated Depreciation = $19,850 + $9,925 + $4,963 +
$1,262
Total Accumulated Depreciation = $36,000
ekkarill92 answered 8 months agoRelated Solutions
Exact Photo Service purchased a new color printer at the beginning of Year 1 for $38,600....
Exact Photo Service purchased a new color printer at the
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Year 1
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Year 3
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Year 4
388,700
Total
1,809,000
The printer was sold at the end of Year 4 for $3,550.
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Exact Photo Service purchased a new color printer at the beginning of Year 1 for $39,700....
Exact Photo Service purchased a new color printer at the
beginning of Year 1 for $39,700. The printer is expected to have a
four-year useful life and a $3,700 salvage value. The expected
print production is estimated at $1,770,500 pages. Actual print
production for the four years was as follows:
Year 1
550,700
Year 2
477,500
Year 3
375,300
Year 4
390,000
Total
1,793,500
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387,900
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Exact Photo Service purchased a new color printer at the
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545,500
2019
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2020
378,800
2021
387,900
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