Task: You are asked to make a depreciation schedule for a business asset. A depreciation schedule shows the remaining value of the asset at the end of each time period. Create a depreciation schedule for each of the following
Question 1. A copy machine that costs $1,800, shipping $50 and installed for $125 depreciated using the straight-line method over 5 years. The salvage value of the copy machine is $200. In your depreciation schedule, give the following information for each year: the year's depreciation, the accumulated depreciation, and the year's end-of-book value.
Question 2. The same copy machine in part 1, has now been decided that it would be more beneficial using units-of-production depreciation. The copy machine is expected to make 5,000,000 copies during its useful life and has already made 925,000 copies. In the second year, 985,225 copies were made; third year, 989,500; fourth year, 935,275; and fifth year 1,165,000. In your depreciation schedule, give the following information for each year: number of copies made, the year's depreciation, the accumulated depreciation, and the year's end-of-book value.