Swanson & Hiller, Inc., purchased a new machine on September 1, 2012 at a cost of $108,000. The machine’s estimated useful life at the time of the purchase was five years, and its residual value was $8,000.
Instructions
a-1.
Prepare a complete depreciation schedule, beginning with calendar year 2012, using the straight-line method. (Assume that the half-year convention is used).