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.
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