Calculate the amount of gain or loss from the sale

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Graphics Service Co. purchased a new color copier at the beginning of 2013 for $47,000. The copier is expected to have a five year useful life and a $7,000 salvage value. The expected copy production was estimated at 2,000,000 copies. Actual copy production for the five years was as follows:

2013 ........ 560,000
2014 ........ 490,000
2015 ........ 430,000
2016 ........ 350,000
2017 ........ 210,000
Total ........ 2,040,000
The copier was sold at the end of 2017 for $7,600. 

Required: 

a. Compute the depreciation expense for each of the five years, using double declining balance depreciation. 

b. Compute the depreciation expense for each of the five years, using units of production depreciation. (Round cost per unit to three decimal places.) 

c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.

Reference no: EM13928994

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