Refer to the information in QS 9-10. Assume the equipment is depreciated using the double-declining-balance method. Calculate depreciation for 2020 and 2021:

a. To the nearest whole month

b. Using the half-year convention

QS 9-10

Crystal Cleaners is an eco-friendly dry cleaner. The following excerpt from its PPE subledger shows the component details regarding the dry cleaning equipment:

Transcribed Image Text:

Dry Cleaning Equipment: Depreciation Estimated Estimated Life Method' SL Units Component Computer panel Dry cleaning drum Stainless steel housing Miscellaneous parts Residual -0- Cost $ 4,000 8 years 400,000 garments 5,000 70,000 20 years SL SL 85,000 26,000 10,000 -0- 2 years $185,000