Question

On April 30, 2009, Tilton Products purchased machinery for $88,000. The useful life of this machinery is estimated at 8 years, with an $8,000 residual value. 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: Group of answer choices

Answer 1

2009 $11,000

2010 $19,250

Step-by-step explanation:

Calculation to determine what Depreciation expense in 2009 and 2010 will be:

2009 depreciation expense=$88,000 × 2/8

2009 depreciation expense = $22,000/2

2009 depreciation expense = $11,000

2010 depreciation expense= $77,000 × 2/8 2010 depreciation expense=$19,250

Therefore the Depreciation expense in 2009 and 2010 will be:

2009 $11,000

2010 $19,250