An industrial size heavy duty printer purchased by The Awesome Print Shop Inc. should last 14,000 hours. The acquisition cost was $12,100 and the salvage value is $1,954. Prepare a UOP (Units-of-Production) depreciation schedule given the annual usage information, then enter the accumulated depreciation at the end of year 4 as your answer. (Round all amounts to the nearest cent) $$\begin{array} { l l }
\text { Years } & \text { Hours } \
\hline 1 & 2,804 \
2 & 2,746 \
3 & 2,289 \
4 & 2,403 \
5 & 4,062 \
\hline
\end{array}$$

Question

An industrial size heavy duty printer purchased by The Awesome Print Shop Inc. should last 14,000 hours. The acquisition cost was $12,100 and the salvage value is $1,954. Prepare a UOP (Units-of-Production) depreciation schedule given the annual usage information, then enter the accumulated depreciation at the end of year 4 as your answer. (Round all amounts to the nearest cent) $$\begin{array} { l l } 
\text { Years } & \text { Hours } \
\hline 1 & 2,804 \
2 & 2,746 \
3 & 2,289 \
4 & 2,403 \
5 & 4,062 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The depreciation per hour is calculated as $(12,100 - 1,954) / 14,000 = 0.7233$. The accumulated depreciation for the first four years is $(2,804 + 2,746 + 2,289 + 2,403) \times 0.7233 = 7,422.48$.

An Industrial Size Heavy Duty Printer Purchased by the Awesome