Refer to the data given for Pandora Pants Company in BE9.9. Assume now that the company has a policy of recording a half year’s depreciation in the year of acquisition and a half year’s depreciation in the year of disposal. Using the double diminishing-balance method, calculate the depreciation expense for each year of the equipment’s life.

Data from BE9.9.

Pandora Pants Company acquires a delivery truck on April 6, 2024, at a cost of $38,000. The truck is expected to have a residual value of $6,000 at the end of its four-year life. Pandora uses the nearest month method to pro-rate depreciation expense. Calculate annual depreciation expense for the first and second years using straight-line depreciation, assuming Pandora has a calendar year end.