Accounting Depreciation Question
On September 5th , 2009 Apollo purchased equipment costing $40,000 with an estimated life of 6 years and an estimated salvage value of $4,000. Compute the depreciation expense Apollo would recognize on this equipment in 2009 assuming.
a. Straight-Line depreciation rounding fractional time to the nearest month
b. Declining balance at 200% rate using the half year convention
Comment on Just Looking's post
Okay... I'll post what I've worked through.
Comment on Just Looking's post
Here's what I worked through so far.
cost - residual value/ useful life in yrs
40,000 - 4,000 / 6 years = 36,000 / 6
36,000 / 6 = 6,000 per year
4 months (500 a month)
500 x 4 = 2000