On 30 April 2013, Tilton Products purchased machinery for $88,000. The useful life of this machinery is estimated at 8 years, with an $8,000 residual value.
-Refer to the above data. Assume that in its financial statements, Tilton Products uses the 200%-declining-balance method and the half-year convention. Depreciation expense in 2013 and 2014 will be:

Question

Quizplus · Accepted Answer

The 200%-declining-balance method results in depreciation expense of $22,000 in 2013 and $11,000 in 2014. However, because the half-year convention is used, depreciation expense in 2013 is reduced by half, to $11,000.

On 30 April 2013, Tilton Products Purchased Machinery for $88,000