In its financial statements, Shoreham uses double-declining-balance depreciation with half-year convention. The book value of the equipment at December 31, 2009, will be:
A) $20,267.
B) $12,667.
C) $25,333.
D) Some other amount.

Question

Quizplus · Accepted Answer

The double-declining-balance method accelerates depreciation, and the half-year convention means only half of the first year's depreciation is taken. The book value calculation would result in $25,333.

In Its Financial Statements, Shoreham Uses Double-Declining-Balance Depreciation with Half-Year