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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: 548,800year 2: 475,400year 3: 385,000year 4: 386,000total: 1,795,200The 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.

Question

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

total: 1,795,200

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.

check_circleAnswer
Step 1

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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Tagged in

Business

Accounting

Depreciation Accounting

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