Reference no: EM132773126
Davidson, DDS, purchased new furniture for its store on May 1, 2011. The furniture is expected to have a 10-year life and no residual value. The following expenditures were associated with the purchase:
Cost of the furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,000
Freight charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...375
Sales taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......550
Installation of furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...75
Cost to repair furniture damaged during installation . . . . . . . . . . . . . . . . . . . . . 400
Problem a: Compute depreciation expense for the years 2011 through 2014 under each depreciation method listed below:
1. Straight-line, with fractional years rounded to the nearest whole month.
2. 200 percent declining-balance, using the half-year convention.
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