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View Full Version : 200%-declining balance with half year convention


acctdummy
Nov 22, 2011, 11:50 AM
On April8, 2010, Dreamland Park purchased a ferris wheel for $300,000. The estimated life of the ferris wheel was 10 years, with an estimated residual vale of $60,000. The service life in terms of output is estimated 30,000 hours of operation Compute the deprecition on this ferrs wheel in 2010 and 2011 using the following methods.

A) straight line with half year convention

B) 200% delining balance with half year convention

C) 150% declining balance with half year conventiion

D) Units of output method ( hours of operation: 2600 in 2010, and 6,000 in 2011

E) Straight line with depreciation calculateed to the nearest whole month