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On August 3, Srini Construction purchased special-purpose equipment at a cost of $1,000,000. The useful life of the equipment was estimated to be eight years, with a residual value of $50,000
a. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the straight-line depreciation method (half-year convention). (Do not round intermediate calculations. Omit the "tiny_mce_markerquot; sign in your response.) Year Straight-Line (Half-Year Convention) 1 $ 2 3 4 5 6 7 8 9 Totals $
b. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the 200 percent declining-balance method (half-year convention) with a switch to straight-line when it will maximize depreciation expense. (Omit the "tiny_mce_markerquot; sign in your response.) Year 200% Declining-Balance (Half-Year Convention) 1 $ 2 3 4 5 6 7 8 9 Totals $
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