A Copy Machine Acquired with a Cost of $1,410 Has

question 154

Essay

A copy machine acquired with a cost of $1,410 has an estimated useful life of four years. It is also expected to have a useful operating life of 13,350 copies. Assuming that it will have a residual value of $75, determine the depreciation for the first year by the following methods:
(a)Straight-line
(b)Double-declining-balance
(c)Units-of-activity method (4,500 copies were made the first year)?

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Definitions:

Prior Service Cost

The cost associated with retroactive benefits granted in a pension plan amendment, recognized over the service lives of affected employees.

Plan Assets

Assets that are specifically earmarked to pay pension benefits, typically held in a pension fund.

Pension Expense

An accounting charge representing the cost to a company of providing retirement benefits to employees during a particular time period.

Projected Benefit Obligation

An actuarial measure of the present value of pension benefits owed to employees, accounting for projected salary increases.