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A printer was purchased for $1200 and has a salvage value of $100. If it is expected to produce a 150,000 copies,

a) what is the unit depreciation for the printer?

b) if it has printed 12,000 copies the first year, what is the year end depreciation?

* do not round off in the middle of the problem

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Solution -

Purchase Price - $1200
Salvage Value - $100

Effective Cost = Purchase Price - Salvage ...

Solution Summary

This shows how to work with depreciation of a printer.