exact photo service purchased a new color printer at the beginning of year 1 for $36,790. the printer is expected to have a four year useful life and a $3,600 salvage value. The expected print production is estimated at 1,773,200 pages. actual print production for the four years was as follows:
year 1: 548,800
year 2: 475,400
year 3: 385,000
year 4: 386,000
The printer was sold at the end of year 4 for $3850.
Compute the depreciation expense for each of the four years, using units of production depreciation.
Calculating the value of unit of production rate. We have,
Unit of production rate = (Cost of printer – Salvage Value) / Estimated number of pages prints during estimated usefu...
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