Various depreciation methods-first year

On September 5, 2018, Apollo purchased equipment costing $40,000, with

an estimated life of 6 years and an estimated salvage value of $4,000.

Compute the depreciation expense Apollo would recognize on this

equipment in 2018, assuming:

a) straight-line depreciation with fractional periods rounded to the nearest full month $_________

b) 200%-declining-balance, using the half-year convention $____________

c) 150%-declining-balance with fractional periods rounded to the nearest full month $_________

Various depreciation methods-first year

On March 24, 2018 Tastee Ice Cream Co. purchased equipment costing $140,000, with an estimated life of 5 years and an estimated salvage value of $20,000.

Compute the depreciation expense Tastee would recognize on this equipment in 2018, assuming:

a) straight-line depreciation with fractional periods rounded to the nearest full month $_________

b) 200%-declining-balance, using the half-year convention $____________

c) 150%-declining-balance with fractional periods rounded to the nearest full month $_________

Declining balance depreciation30)

On July 6, 2017, Grayson purchased new machinery with an estimated

useful life of 10 years. The cost of the equipment was $80,000, with a

residual value of $8,000.

Compute the depreciation on this machinery in 2017 and 2018 using each of

the following methods.

20172018

(a) 150%-declining-balance, using the half-year$________$_______

convention

(b) 200%-declining-balance, using the half-year$________$_______

convention