Paper Printing Company purchased a copy machine for
$ 65 comma 000$65,000
on Januaryâ 1, 2010. The copy machine had an estimated usefullife of five years or
1 comma 000 comma 0001,000,000
copies. Paper Printing estimated the copyâ machine's salvagevalue to be
$ 5 comma 000$5,000.
The company madeââ
250 comma 000250,000
copies in 2010 and
190 comma 000190,000
copies in 2011.Requirements
LOADING...
1. Calculate the depreciation expense for eachyear using the straight line method.
-
=
/
=
Depreciation expense
-
=
/
=
Now we can determine the depreciation per unit. â(Round to twodecimalâ places.)
/
=
Cost per copy
/
=
Now that the cost per unit has been established we can nowdepreciate the copy machine based on the number of copiesproduced.
Year
x
=
Depreciation expense
2010
x
=
2011
x
=
2. Which method portrays the actual use of thisasset moreâ accurately? Explain your answer.
When usingâ straight-line depreciation the depreciationexpense
â¼
is higher at the end of life of the asset
is lower at the end of the life of the asset
remains the same every year
. âStraight-line depreciation assumes that the asset will beused
â¼
equally
less
more
every year. Activity depreciation is also known as
â¼
straight line
units of production
double declining balance
. The activity method depends on the
â¼
actual
estimated
number of units produced.
Paper Printing Company purchased a copy machine for
$ 65 comma 000$65,000
on Januaryâ 1, 2010. The copy machine had an estimated usefullife of five years or
1 comma 000 comma 0001,000,000
copies. Paper Printing estimated the copyâ machine's salvagevalue to be
$ 5 comma 000$5,000.
The company madeââ
250 comma 000250,000
copies in 2010 and
190 comma 000190,000
copies in 2011.Requirements
LOADING...
1. Calculate the depreciation expense for eachyear using the straight line method.
- | = | / | = | Depreciation expense | |||||
- | = | / | = |
Now we can determine the depreciation per unit. â(Round to twodecimalâ places.)
/ | = | Cost per copy | ||||
/ | = |
Now that the cost per unit has been established we can nowdepreciate the copy machine based on the number of copiesproduced.
Year | x | = | Depreciation expense | |||
2010 | x | = | ||||
2011 | x | = |
2. Which method portrays the actual use of thisasset moreâ accurately? Explain your answer.
When usingâ straight-line depreciation the depreciationexpense
â¼
is higher at the end of life of the asset
is lower at the end of the life of the asset
remains the same every year
. âStraight-line depreciation assumes that the asset will beused
â¼
equally
less
more
every year. Activity depreciation is also known as
â¼
straight line
units of production
double declining balance
. The activity method depends on the
â¼
actual
estimated
number of units produced.
Related questions
Paper Printing Company purchased a copy machine for $65,000onJanuaryâ 1, 2010. The copy machine had an estimated useful life offive years or 1,000,000 copies. Paper Printing estimated the copyâmachine's salvage value to be $5,000. The company made 250,000copies in 2010 and 190,000 copies in 2011.Requirements
1. Calculate the depreciation expense for eachyear using the straight line method.
- | = | / | = | Depreciation expense | |||||
- | = | / | = |
Now we can determine the depreciation per unit. â(Round to twodecimalâ places.)
/ | = | Cost per copy | ||||
/ | = |
Now that the cost per unit has been established we can nowdepreciate the copy machine based on the number of copiesproduced.
Year | x | = | Depreciation expense | |||
2010 | x | = | ||||
2011 | x | = |
2. Which method portrays the actual use of thisasset moreâ accurately? Explain your answer. When usingâstraight-line depreciation the depreciation expense
â¼
is higher at the end of life of the asset is lower at the end ofthe life of the asset remains the same every year . âStraight-linedepreciation assumes that the asset will be used
â¼
equally less more every year. Activity depreciation is alsoknown as
â¼
units of production straight line double declining balance . Theactivity method depends on the
â¼
actual estimated number of units produced.
