Question

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Exact Photo Service purchased a new color printer at the beginning of 2018 at $38,600. The printer is expected to have four-year useful life and a $1,544 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows:

2018 548,000

2019 481,000

2020 381,700

2021 389,300

Total 1,800,600

The printer was sold at the end of 2021 for $1,794

b) Compute the depreciation expense for each of the four years, using units-of-production depreciation. (Round cost per unit to three decimal places. Round your final answers to nearest dollar amount.)

2018

2019

2020

2021

Answer 1

Depreciation per page = (38600-1544)/1,500,000

= 0.025

2018 - (0.025*548,000)	13,700
2019 - (0.025*481,000)	12,025
2020 - (0.025*381,700)	9543
2021 - (0.025*389,300)	9733