Graphics Service Co. purchased a new color copier at the beginning of 2014 for $
ID: 2422106 • Letter: G
Question
Graphics Service Co. purchased a new color copier at the beginning of 2014 for $37,210. The copier is expected to have a five-year useful life and a $5,570 salvage value. The expected copy production was estimated at 2,000,000 copies. Actual copy production for the five years was as follows: 2014 548,400 2015 484,900 2016 378,800 2017 391,400 2018 241,000 Total 2,044,500 The copier was sold at the end of 2018 for $5,720. References Section BreakExercise 6-10 Double-declining-balance and units-of-production depreciation: gain or loss on disposal LO 6-3, 6-4 1. value: 0.33 points Required information Exercise 6-10 Part a Required a. Compute the depreciation expense for each of the five years, using double-declining-balance depreciation. (Round your intermediate calculations and final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "0" wherever required.)
Explanation / Answer
Ans-
Cost: $37,210.00, Salvage: $5,570.00, Life: 5 years
Year Book Value Depreciation % Depreciation Expense Book Value Year end 2014 $37,210 20.00% $7,442 $29,768 2015 $29,768 40.00% $11,907 $17,816 2016 $17,861 40.00% $7,144 $10,716 2017 $10,716 40.00% $4,287 $6,430 2018 $6,430 13.37% $860 $5,570Related Questions
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