Exact Photo Service purchased a new color printer at the beginning of 2018 for $42,400. The printer is expected to have a four-year useful life and a $1,696 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows:

2018 548,900
2019 484,200
2020 378,400
2021 386,100
Total 1,797,600
The printer was sold at the end of 2021 for $1,896.

Compute the depreciation expense for each of the four years, using double-declining-balance depreciation.

Depreciation for 2018 is = $14894.95

Depreciation for 2019 is  = $13139.25  

Depreciation for 2020 is = $10268.25

Depreciation for 2021 is = $10477.20

Explanation:

given data

purchased new color printer beginning = $42,400

salvage value = $1,696

expected print production = 1,500,000

printer sold at end = $1,896

solution

we know here Depreciation under Units of production method is    

Depreciation is = (Cost - Salvage value) × (No of units produced ÷ Expected units of production)   1

put here value for each year

Depreciation for 2018 is = (42400-1696) × (548,900 ÷ 1500000)

Depreciation for 2018 is = $14894.95

and

Depreciation for 2019 is = (42400-1696) ×  (484,200 ÷ 1500000)

Depreciation for 2019 is  = $13139.25  

and

Depreciation for 2020 is = (42400-1696) ×  (378,400 ÷ 1500000)

Depreciation for 2020 is = $10268.25

and

Depreciation for 2021 is = (42400-1696) ×  (386,100 ÷ 1500000)

Depreciation for 2021 is = $10477.20