Calculating depreciation expense using four different methods [LO 3]
O'Brian Service Company purchased a copier on January 1, 2012, for $17,900 and paid an additional $150 for delivery charges. The copier was estimated to have a life of four years or 800,000 copies. Salvage was estimated at $1,400. The copier produced 226,000 copies in 2012 and 245,000 copies in 2013.
Required:
Costmce_markernbsp; Delivery Cost Total Less: Salvage Value Depreciable Costmce_markernbsp; ÷ = mce_markernbsp; per year 2012: mce_markernbsp; 2013: $
a. Compute the amount of depreciation expense for the copier for calendar years 2012 and 2013, using Units-of-production method. (Round "Cost per Copy" values to 2 decimal places. Input all amounts as positive values. Omit the "$" sign in your response.)
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Total Estimated
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[Cost - Salvage Value] ÷ Units of Production = Cost per Unit
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mce_markernbsp; - $
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= mce_markernbsp; per Copy
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Cost
per Copy
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×
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Current Units of
Production
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=
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Annual
Depreciation
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2012:
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mce_markernbsp;
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×
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=
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mce_markernbsp;
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2013:
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mce_markernbsp;
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×
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=
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mce_markernbsp;
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b. Compute the amount of depreciation expense for the copier for calendar years 2012 and 2013, using Double-declining-balance method. (Round your "SL rate" values to 2 decimal places and other answers to the nearest dollar amount. Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.)
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(Cost - Acc. Depr. at Beginning of Period)
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×
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(2 × SL Rate)
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=
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Annual
Depreciation
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2012:
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(mce_markernbsp; - )
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×
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(2 × )
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=
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$
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2013:
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(mce_markernbsp; - )
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×
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(2 × )
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=
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mce_markernbsp;
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