1. On April 30, 2009, Tilton Products purchased machinery for $88,000. The usefu

Question

1. 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: A) $11,000 in 2009 and $18,857 in 2010. B) $22,000 in 2009 and $12,571 in 2010 C) $22,000 in 2009 and $7,857 in 2010. D) $11,000 in 2009 and $22,000 in 2010.

Explanation / Answer

D. first year 88,000 * (1/8) = 11,000 2nd year 77000 * (1/7)*2 = 22,000

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