Question

Exact Photo Service purchased a new color printer at the beginning of Year 1 for $37,490. The printer is expected to have a four-year useful life and a $3,100 salvage value. The expected print production is estimated at $1,770,900 pages. The printer was sold at the end of Year 4 for $3,500. Actual print production for the four years was as follows:

YEAR 1 : 546,300

YEAR 2: 476,800

YEAR 3: 384,400

YEAR 4: 385,400

TOTAL: 1,792,900

Compute the depreciation expense for each of the four years using UNITS OF PRODUCTION DEPRECIATION VALUE

Year 1 _____

Year 2 _____

Year 3______

Year 4______

Total A/D _____

Answer 1