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Accounting: Depreciation

SERV-U Computer Service Company bought a laser printer for $15,000. The machine is expected to operate for 28,000 hours, after which its trade-in value will be $1,000. Find the unit depreciation for the printer. The first year the machine was operated 4,160 hours. Find the depreciation for the year.

A new minivan was purchased for $24,400 and currently has an end-of-year book value of $20,080 after one year of operation. Find the year's rate of depreciation. What will be the end-of-year book value of this minivan after two years if the rate of depreciation remains the same?

Solution Preview

Total depreciation = 15000 - 1000
= 14000
Assuming straight line depreciation,

Unit depreciation = 14000 / 28000
= $0.50

Depreciation ...

Solution Summary

Depreciation problems are solved.