Reference no: EM132338402

Question

On March 1, 2015, Copy Line paid $102,000 for a new copy machine. It was estimated that the machine would produce 850,000 copies over the next 5 years, at which time it could be sold for $17,000. The copy machine made the following amount of copies during its life:

2015 110,000 copies

2016 168,000 copies

2017 154,000 copies

2018 143,000 copies

2019 87,500 copies

It was sold on June 1, 2019 for $18,500.

1. Assuming Copy Line uses the Double-Declining Balance method of depreciation, calculate 2018 depreciation expense:

a. $ 7,480

b. $ 9.792

c. $14,300

d. $17,300

e. $34,000

2. Assuming instead, that Copy Line uses the Unit of Production method of depreciation, calculate the amount in Copy Line's accumulated depreciation account as of 12/31/17 (after adjustments):

a. $15,400

b. $18,480

c. $38,617

d. $43,200

e. $51,840