Declining Balance Depreciation
on 6 July 2011, Grayson Purchased New

Essay

Declining balance depreciation
On 6 July 2011, Grayson purchased new machinery with an estimated useful life of 10 years. Cost of the equipment was $80,000, with a residual value of $8,000.
Compute the depreciation on this machinery in 2011 and 2012 using each of the following methods. $\begin{array}{|l|l|l|}\hline& \$ 2011 & 2012\\ \hline\text { (a) } 150 \% \text {-declining-balance, using the half-year } \\\text { convention } & \$ \underline{\quad\quad} & \$\underline{\quad\quad}\\\hline \begin{array}{l}\text { (b) } 200 \% \text {-declining-balance, using the half-year } \\\text { convention }\end{array} & \$ \underline{\quad\quad}& \$\underline{\quad\quad} \\\hline \end{array}$