Exact Photo Service purchased a new color printer at the beginning of Year 1 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 2019:300,000Total:1,520,000The 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.2016:2017:2018:2019:To tal accumlated depreciated:B. Compute the depreciation expense for each of the four years, using units-of-production depreciation.2016:2017:2018:2019:To tal accumlated depreciated:C. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation methods. DDB:Units-of-production

Double declining

journal entry:

acc dep Equip 34,500 debit

cash                     1,650 debit

loss on disposal  1,850 debit

                                    equipment 38,000 credit

Explanation:

double declining rate:

2 /4 years of useful life = 0.5

Each year we multply the carrying value times the declining rate but last year, we adjust only to get the salvage value.

units of production

38,000 - 3,500 = 34500 amount subject dto depreciation

34,500 / 1,520,000 expected units-of-output = 0.022 rate per unit

we multiply the output by the activity level of each year

Sales gain or loss:

asunder both method is being sold at the end of the useful life it will be the same for each method

we compare the 3,500 ssalvage value against the 1,650 received and get a loss for 1,850

acc dep Equip 34,500 debit

cash                     1,650 debit

loss on disposal  1,850 debit

                                    equipment 38,000 credit

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answerall of these;