Reference no: EM132557904

Micro citrus company purchased new equipment on September 4, 1993 at a cost of $80,000. Useful life of this equipment was estimated at 4 years, with an estimated residual value of $5000.

Instructions:

Question 1: Compute the annual depreciation expense for each year until this equipment becomes fully depreciated under each of the depreciation methods listed below.

1. Straight-line, with depreciation for fractional years rounded to the nearest whole month.
2. Sum of the year digit with half year convention
3. 200% declining balance method with half year convention.