Exact Photo Service purchased a new color printer at the beginning of 2018 for $38,000. The printer is expected to have a four-year useful life and a $3,500 . The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows:
2018………………………………………..390,000
2019………………………………………..410,000
2020………………………………………..420,000
2021………………………………………..300,000
Total……………………………………..1,520,000
The printer was sold at the end of 2021 for $1,650.
Required
a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation.
b. Compute the depreciation expense for each of the four years, using units-of-production depreciation.
c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.
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