Problem:
On March 24, 2009 Tastee Ice Cream Co. purchased equipment costing $140,000, with an estimated life of 5 years and an estimated salvage value of $20,000
Required:
Question: Compute the depreciation expense Tastee would recognize on this equipment for each of the five years, assuming:
- Straight line depreciation using the half year convention
- 200% declining balance using the half year convention
- 150% declining balance using half year convention
Note: Please show how to work it out.