In January year 1, Exo photo service bought a new color
printer for 100,000 $. In order for the printer to be
used in the company's operations, the company had to buy the
Exton3000 plug-in with a faster printout of 120%, which costs an
additional SEK 10,000. The printer's shelf life is $ 15,000. but
its lifespan is 5 years. Estimated pages printed over a lifetime
are 500,000. The company uses depreciation based on
performance.
The actual print production was as follows:
| year 1 | 80,000 |
| year 2 | 150,000 |
| year 3 | 70,000 |
| year 4 | 90,000 |
| year 5 | 130,000 |
What was the depreciation at year 4 and what was the accumulated depreciation at the end of the fourth year?
| a | $ 17.100 / $ 74.100 |
| b | $ 15.300 / $ 66.300 |
| c | $ 18.000 / $ 78.000 |
| d | $ 19.800 / $ 85.800 |
Depreciation per page = (Cost - Salvage value) /Total production
= (100,000+10,000 - 15,000)/500,000
= 0.19 per page
Depreciation for year 4
= 0.19 * 90,000
= 17,100
Option A is the answer
In January year 1, Exo photo service bought a new color printer for 100,000 $. In order...
E6-10 (modified) Exact Photo Service purchase a new color printer at the beginning of 2019 for $28,000. The printer is expected to have a four-year useful life and a $3,500 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows: Year Pages Printed 2018 390,000 2019 410,000 2020 400,000 2021 300,000 The printer was sold at the end of 2021 for $1,650. Compute the depreciation expense, accumulated depreciation and...