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

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Description: None Exact Photo Service purchased a new color printer at the beginning of Year 1 for $37,040. The printer isexpected to have a four-year useful life and a $3,500 salvage value. The expected print production isestimated at $1,775,200 pages. Actual pr

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...

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Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.
Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
A truck was recently purchased for 75,000 with a salvage value of 5,000 and an estimated useful life of eight years or 150,000 miles (24,000 miles per year for the first five years and 10,000 miles per year after that). Enter the new information in the Data Section of the worksheet. Again, make sure the totals for all three methods are in agreement. Print the worksheet. Save this new data as DEPREC5.
Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.
During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
Urquhart Global purchases a building to house its administrative offices for $500,000. The best estimate of the salvage value at the time of purchase was $45,000, and it is expected to be used for forty years. Urquhart uses the straight-line depreciation method for all buildings. After ten years of recording depreciation, Urquhart determines that the building will be useful for a total of fifty years instead of forty. Calculate annual depreciation expense for the first ten years. Determine the depreciation expense for the final forty years of the assets life, and create the journal entry for year eleven.
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
exact photo service purchased a new color printer at the beginning of year 1 for $36,790. The printer is expected to have a four year useful life and a $3,600 salvage value. The expected print production is estimated at $1,773,200 pages. Actual print production for the four years was as follows: year one: 548,800 year two: 475,400 year three: 385,000 year four: 386,000 total: 1,795,200 The printer was sold at the end of year 4 for $3,850. Compute the depreciation expense for each of the four years, using double declining balance depreciation.
Exact Photo Service purchased a new color printer at the beginning of Year 1 for $40,600. The printer is expected to have a four-year useful life and a $4,060 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows: Year 1 549,200 Year 2 476,900 Year 3 383,100 Year 4 393,600 Total 1,802,800 The printer was sold at the end of Year 4 for $4,460. Required Compute the depreciation expense for each of the four years, using double-declining-balance depreciation. Compute the depreciation expense for each of the four years, using units-of-production depreciation. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.
exact photo service purchased a new color printer at the beginning of year 1 for $36,790. the printer is expected to have a four year useful life and a $3,600 salvage value. The expected print production is estimated at 1,773,200 pages. actual print production for the four years was as follows: year 1: 548,800 year 2: 475,400 year 3: 385,000 year 4: 386,000 total: 1,795,200 The printer was sold at the end of year 4 for $3850. Compute the depreciation expense for each of the four years, using units of production depreciation.
exact photo service purchased a new color printer at the beginning of year 1 for $36,790. The printer is expected to have a four year useful life and $3,600 salvage value. The expected print production is estimated at 1,773,200 pages. Actual print production for the four years was as follows: year 1: 548,800 year 2: 475,400 year 3: 385,000 year 4: 386,000 total: 1,795,200 the printer was sold at the end of year 4 for $3850. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.