Various Depreciation Methods-First Year
on September 5, 2009, Apollo Purchased

question 87

Essay

Various depreciation methods-first year
On September 5, 2009, 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 2009, assuming:
$$\begin{array} { | l | l | } \hline \text { (a) Straight-line depreciation with fractional periods rounded } \\\text { to the nearest full month }& \$ \underline{\quad\quad}\\\hline \text { (b) } 200 \% \text {-declining-balance, using the half-year convention }& \$ \underline{\quad\quad} \\\hline \text { (c) } 150 \% \text {-declining-balance with fractional periods rounded } \\\hline \text { to the nearest full month } & \$ \underline{\quad\quad}\\\hline\end{array}$$

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Definitions:

Groundwater

Water that is stored underground in soil or between rocks, supplying wells and springs, and playing a crucial role in the hydrological cycle.

Landslide

A mass movement of rock, earth, or debris down a slope due to gravity.

Pressure

The force exerted by something against a surface, usually measured in units such as Pascal (Pa) or pounds per square inch (psi).

Basaltic Lava

A type of lava originating from the mantle, characteristically dark and rich in magnesium and iron, with low viscosity.