Exact Photo Service purchased a new color printer at the beginning of 2016 for $38,000. The printer is expected to have a four-year useful life and a $3,500 salvage value. The expected print production is estimated at 1,500,000 pages. Actual print production for the four years was as follows:
2016 …… 390,000
2017 ……. 410,000
2018 …… 420,000
2019 …… 300,000
Total …… 1,520,000
The printer was sold at the end of 2019 for $1,650.
a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation.
b. Compute the depreciation expense for each of the four years, using units-of-production depreciation.
c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods.