Question

On April 30, 2009, Tilton Products purchased machinery for $264,000. The useful life of this machinery is estimated at 8 years, with an $24,000 residual value. value: 3.00 points Refer to the information above. Assume that in its financial statements, Tilton Products uses straight-line depreciation and the half-year convention. Depreciation expense recognized on this machinery in 2009 and 2010 will be: O $22,500 in 2009 and $33,000 in 2010. $18,000 in 2009 and $36,000 in 2010. $15,000 in 2009 and $30,000 in 2010. $33,000 in 2009 and $16,500 in 2010. value: 4.00 points Refer to the information above. Assume that in its financial statements, Tilton Products uses the 200%- declining-balance method and the half-year convention. Depreciation expense in 2009 and 2010 will be: O $33,000 in 2009 and $57,750 in 2010. $66,000 in 2009 and $57,750 in 2010. $66,000 in 2009 and $49,500 in 2010. O $33,000 in 2009 and $66,000 in 2010.

Answer 1

Sol! Given data. Products perschased machine on April 30. 2009. Tilton is -ry for $264.000. I this machinery The usefeel life of this machines years with an $24.000 residual value. estimated at 8 1) values 3:00 Points > Computation of annual depreciation = original costs - Salvage value) useful life 364000 - 24 000 940000 - 30.000 h computation of annual depreciation - 30.000) - Depreciation for 2009 halb year. - computation of onduod depreciation 30000 - 15000

depreciation for 2009. half year + 15000 Idepreciation for 2010 – 30.000) - option c $15.000 in 2009 and $30.000 in 2010 g) values 4900 points ir - computation of 2009 depreciation (half year) -original cost X depreciation rate 864000 X 85% 66000 2 - 33000 2009 depreciation (halb year = 33000 Computation of - computation of 2010 depreciation. anet book value X depreciation rate. Here net book value. Original costs accumulated depe - ciation. 264000-33000 2231000

net book value = 231000 computation 06 2010 depreciation - net book value a depreciation rate, - 231000 X 95% 57250 - option of $33000 in 2009 and $57.950 to 2010. working tio of straight line depreciation rare useful life is 8 years. These for Y-12,5% computation of 2004 declining balance depreciation rate. It is the 200% of straight line depreciation date - 12.5 X 200%) .85%