Question Wesley Co. purchased an equipment on April 1, 2013. It has an expected life of 20 years and no residual value. The company's financial year ended on December 31. The following expenditures were associated with the purchase: Cost of equipment Freight charges Sales taxes $120,000 5,200 7,800 27,000 Installation of equipment Required: (SHOW WORKINGS) Compute the depreciation expense for Years 2013 and 2014, using (i) the straight-line method with fractional years rounded to the nearest whole month; (ii) the 150% declining balance and using the half-year convention.
Question Wesley Co. purchased an equipment on April 1, 2013. It has an expected life of 20 years and no residual value. The company's financial year ended on December 31. The following expenditures were associated with the purchase: Cost of equipment Freight charges Sales taxes $120,000 5,200 7,800 27,000 Installation of equipment Required: (SHOW WORKINGS) Compute the depreciation expense for Years 2013 and 2014, using (i) the straight-line method with fractional years rounded to the nearest whole month; (ii) the 150% declining balance and using the half-year convention.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...
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