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:

Conformity Pressures

The influence exerted by a group that encourages individuals to change their attitudes, values, or behaviors to align with group norms.

Asch

Refers to Solomon Asch, known for his research on conformity, specifically the experiments demonstrating the influence of group pressure on opinions.

Crutchfield Situation

A technique used in social psychology experiments to study conformity, where individuals must make judgments while being exposed to the presumed opinions of others.

Asch Situation

An experiment by Solomon Asch that demonstrated the power of conformity in groups, where individuals often agree with a consensus even if it is clearly incorrect.