Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below Exact Photo Service purchased a new color printer at the beginning of 2018 for $39,900. The printer is expected to have a four-year useful life and a $1,596 salvage value. T print production for the four years was as follows: nt earuseon ior anetos st e vollae The expected print production is estimated at 1 2018 2019 2020 545,789 478,489 381,800 Total 1,792,689 The printer was sold at the end of 2021 for $2.046. Required a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation. (Do not round your intermediate calculations. Round final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "O" wherever required.)

Explanation / Answer

a)Double declining depreciation rate= 2 /useful life in years

                                   = 2 / 4

                                   = .50 or 50%

b)Depreciation rate per unit = [cost- salvage value ]/useful life in units

           =[39900-1596]/1500000

         = $ .026 per unit

Double declining balance carrying value at end 2018 39900*.50 = 19950 39900-19950=19950 2019 19950*.50 = 9975 19950-9975 = 9975 2020 9975*.50= 4987.5   [rounded to 4988] 9975-4988= 4987 2021 4987*.50= 2493.5 [rounded to 2494] 4987-2494 = 2493

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