Exact Photo Service purchased a new color printer at the beginning of Year 1 for $38,600....

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Accounting

Exact Photo Service purchased a new color printer at thebeginning of Year 1 for $38,600. The printer is expected to have afour-year useful life and a $3,400 salvage value. The expectedprint production is estimated at $1,788,000 pages. Actual printproduction for the four years was as follows:
Year 1 554,500
Year 2 481,600
Year 3 384,200
Year 4 388,700
Total 1,809,000

The printer was sold at the end of Year 4 for $3,550.
Required
a. Compute the depreciation expense for each of the fouryears, using double-declining-balance depreciation.

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3.7 Ratings (460 Votes)

The double declining balance method is an accelerated depreciation methodUsing this method depreciation is calculated using Book Value at the beginning of See Answer

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Year 1		554,500
Year 2		481,600
Year 3		384,200
Year 4		388,700
Total		1,809,000