Various Depreciation Methods-First Year
on March 24, 2009 Tastee Ice

question 2

Essay

Various depreciation methods-first year
On March 24, 2009 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 2009, assuming:
$$\begin{array} { | l | l | } \hline \text { (a) Straight-line depreciation using the half-year convention } & \$\_\_\_ \\\hline \text { (b) } 200 \% \text { declining balance with fractional periods } & \\\hline \text { rounded to the nearest full month. } & \$ \_\_\_\\\hline \text { (c) } 150 \% \text {-declining-balance, using the half-year convention } & \$\_\_\_ \\\hline\end{array}$$

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Definitions:

Auditory Ossicles

The three small bones in the middle ear that are critical in transmitting sound vibrations to the inner ear.

Axial

Relating to the central part of the body, which includes the head, neck, and trunk.

Intervertebral Disk

A fibrocartilaginous disc situated between adjacent vertebrae in the vertebral column, acting as a shock absorber and allowing movement.

Thoracic Region

The part of the body including the chest, between the neck and the abdomen, containing the thoracic vertebrae and ribs.