Answer:
Straight-line method
Depreciation expense: $19,800
Book value : $153,600
b. Double-declining-balance method.
Depreciation expense: $43,350
Book value : $130,050
c. Units-of-production method
Depreciation expense: $23,760
Book value : $149,640
Explanation:
Straight line depreciation expense = (cost of asset - residual value) / useful life
($173,400 - $15,000) / 8 = $19,800
The straight line depreciation method allocates the same deprecation expense for each year of the useful life of the asset.
So, deprecation expense in 2009 would be
$19,800.
Book value = Cost of asset - deprecation expense
$173,400 - $19,800 = $153,600
Depreciation expense using the Double declining method = depreciation factor × cost of asset
Deprecation factor = 2 x (1/useful life) = 2 x (1/8) = 0.25
0.25 x $173,400 = $43,350
Book value = $173,400 - $43,350 = $130,050
Deprecation expense using the unit of production method = deprecation factor × (cost of asset - Salvage value)
Depreciation factor = Total pages printed in 2009 / total pages that can be printed by the machine
675,000 /4,500,000 = 0.15
0.15 x ($173,400 - $15,000) = $23,760
Book value at the end of 2009 = $173,400 - $23,760 = $149,640
I hope my answer helps you
