On April 30, 2014, Tilton Products purchased machinery for $264,000. The useful

Question

On April 30, 2014, Tilton Products purchased machinery for $264,000. The useful life of this machinery is estimated at 8 years, with an $24,000 residual value.

Assume that in its financial statements, Tilton Products uses straight-line depreciation and the half-year convention. Depreciation expense recognized on this machinery in 2014 and 2015 will be:

$15,000 in 2014 and $30,000 in 2015.

$18,000 in 2014 and $36,000 in 2015.

$33,000 in 2014 and $16,500 in 2015.

$22,500 in 2014 and $33,000 in 2015.

Assume that in its financial statements, Tilton Products uses the 200%-declining-balance method and the half-year convention. Depreciation expense in 2014 and 2015 will be:

$66,000 in 2014 and $49,500 in 2015.

$33,000 in 2014 and $66,000 in 2015.

$66,000 in 2014 and $57,750 in 2015.

$33,000 in 2014 and $57,750 in 2015.

Assume that in its financial statements, Tilton Products uses the 150%-declining-balance method and the half-year convention. Depreciation expense in 2014 and 2015 will be:

$24,750 in 2014 and $44,859 in 2015.

$49,500 in 2014 and $49,500 in 2015.

$49,500 in 2014 and $44,859 in 2015.

$45,000 in 2014 and $41,063 in 2015.

Explanation / Answer

SOLUTION:

1. $15,000 in 2014 and $30,000 in 2015.

2.$33,000 in 2014 and $57,750 in 2015.

3.

$24,750 in 2014 and $44,859 in 2015.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.