Carrying value for the new blueprint printer

Reference no: EM131020479

Laughlin Designs, Inc., purchased a computerized blueprint printer that will assist in the design and display of plans for factory layouts. The cost of the printer was $22,500, and its expected useful life is four years. The company can probably sell the printer for $2,500 at the end of six years. The printer is expected to last 6,000 hours. It was used 1,200 hours in year 1; 1,800 hours in year 2; 2,400 hours in year 3; and 600 hours in year 4.

Required

1. Compute the annual depreciation and carrying value for the new blueprint printer for each of the four years (round to the nearest dollar where necessary) under each of the following methods: (a) straight-line, (b) production, and (c) double-declining-balance.

2. If the printer is sold for $12,000 after year 2, what would be the gain or loss under each method?

Reference no: EM131020479

Questions Cloud

Calculate the price elasticity of demand for rye : Calculate the change in the quantity of rye demanded divided by the change in the price of rye, but this time measure the quantity of rye in millions of bushels. Compare your answer to the one you computed in (a).

What are the three biggest risks the firm faces : Explain how the business risks differ between traditional tax and audit services and management consulting services. In your opinion, what are the three biggest risks the firm faces if it diversifies into the new service line?

Present worth of the companys total income : A certain company's income has been declining steadily over the last three years. If income in year 1 was $100,000 and it declined by $10,000 per year; which of the following is closest to the present worth of the company's total income over the thre..

Sources of the data are printed in capital letters : The data required to reconcile the bank statement as of July 31 have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on accou..

Carrying value for the new blueprint printer : Compute the annual depreciation and carrying value for the new blueprint printer for each of the four years (round to the nearest dollar where necessary) under each of the following methods: (a) straight-line, (b) production, and (c) double-declin..

What was the gift tax : In 2010, mike gave $13,000 worth of ABC stock to his son, In 2014, the ABC shares are worth $25,000. What was the gift tax in 2010? AND What is the total amount removed from mikes estate in 2014?

Calculate the revenue-maximizing level of output : What is the difference between the output level where the total profit is maximized and the output level where the total revenue (TR) is maximized?

Determine the concavity of each part of the graph : Find all the points of inflection of f(x). Determine the concavity of each part of the graph, showing your results in a table. Sketch the graph on a suitable scale showing the concavity and points of inflection.

Is the demand for these puzzles elastic or inelastic : In the 2010 holiday season, Steve Richardson decided to cut the prices of his handcrafted wooden puzzles to increase sales. According to a newspaper account, "the number of orders at Stave Puzzles Inc., his Norwich, Vermont, business, hasn't been ..

User Account

All Pages