Double-declining-balance and units-of-production depreciation:
gain or loss on disposal
Print Service Co. purchased a new color copier at the beginning of 2011 for $35,000. The copier is expected to have a five-year useful life and a $5,000 salvage value. The expected copy production was estimated at 2,000.000 copies. Actual copy production for the five years was as follows:
2011 | 550,000 |
2012 | 480,000 |
2013 | 380,000 |
2014 | 390,000 |
2015 | 240,000 |
Total | 2,040,000 |
The copier was sold at the end of 2015 for $5,200.
Required
a. Compute the depreciation expense for each of the five years, using double-declining-balance depreciation.
b. Compute the depreciation expense for each of the five years, using units-of-production depreciation. (Round cost per unit to three decimal places.)
c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.