Exact Photo Service purchased a new color printer at the beginning of Year 1 for $37,040. The printer is expected to have a four-year useful life and a $3,500 salvage value. The expected print production is estimated at $1,775,200 pages. Actual print production for the four years was as follows: Year 1 551,400 Year 2 482,000 Year 3 384,100 Year 4 386,700 Total 1,804,200 The printer was sold at the end of Year 4 for $3,850. 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. Depreciation Expense Year 1
Exact Photo Service purchased a new color printer at the beginning of Year 1 for $37,040. The printer is expected to have a four-year useful life and a $3,500 salvage value. The expected print production is estimated at $1,775,200 pages. Actual print production for the four years was as follows: Year 1 551,400 Year 2 482,000 Year 3 384,100 Year 4 386,700 Total 1,804,200 The printer was sold at the end of Year 4 for $3,850. 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. Depreciation Expense Year 1
Chapter1: Financial Statements And Business Decisions
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:Exact Photo Service purchased a new color printer at the beginning of Year 1 for $37,040. The printer is
expected to have a four-year useful life and a $3,500 salvage value. The expected print production is
estimated at $1,775,200 pages. Actual print production for the four years was as follows:
Year 1
Year 2
551,400
482,000
Year 3
384,100
Year 4
386,700
Total
1,804,200
The printer was sold at the end of Year 4 for $3,850.
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.
Depreciation
Expense
Year 1
Brown my work
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