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castortr0y [4]
3 years ago
11

Exact Photo Service purchased a new color printer at the beginning of 2018 for $42,700. The printer is expected to have a four-y

ear useful life and a $1,708 salvage value. The expected print production is estimated at 1,500,000 pages.
Actual print production for the four years was as follows:

2018:553,300

2019: 480,600

2020: 380,600

2021: 390,100

Total: 1,804,600

The printer was sold at the end of 2021 for $1,858.

Compute the depreciation expense for each of the four years, using units-of-production depreciation (Round cost per unit to three decimal places. Round your final answers to nearest dollar amount.)
Business
1 answer:
MAVERICK [17]3 years ago
5 0

Answer:

Depreciation for 2018 is = $15,120.60

Depreciation for 2019 is  = $13,133.84

Depreciation for 2020 is = $10,401.04

Depreciation for 2021 is = $10,660.65

Explanation:

solution

we know here

Depreciation under Units of production method is    

Depreciation is = (Cost - Salvage value) × (No of units produced ÷ Expected units of production)

put here value for each year

Depreciation for 2018 is = (42700-1708) × (553300 ÷ 1500000)

Depreciation for 2018 is = $ 15,120.60

 

Depreciation for 2019 is = (42700-1708) ×  (480600 ÷ 1500000)

Depreciation for 2019 is  = $ 13,133.84  

 

Depreciation for 2020 is = (42700-1708)×  (380600 ÷ 1500000)

Depreciation for 2020 is = $ 10,401.04

 

Depreciation for 2021 is = (42700-1708)×  (390100 ÷ 1500000)

Depreciation for 2021 is = $ 10,660.65

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