Question: On August 3 , Cinco Construction purchased special - purpose equipment at a cost of $ 2 , 5 0 0 , 0 0 0

On August

3,

Cinco Construction purchased special

-

purpose equipment at a cost of $

2, 500, 000 .

The useful life of the equipment was estimated to be eight years

Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the

200

percent declining

-

balance method

(

half

-

year convention

)

with a switch to straight

-

line when it will

maximize depreciation expense.

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