1)

On April 2, Year 1, Victor, Incorporated acquired a new piece of filtering equipment. The cost of the equipment was $360,000 with a residual value of $30,000 at the end of its estimated

useful lifetime of 10 years. Victor uses a calendar year-end for financial reporting.

Assume that in its financial statements, Victor uses straight-line depreciation and the half-year convention. Depreciation recognized on this equipment in Year 1 and Year 2 will be:$36,000 in Year 1 and $64,800 in Year 2.

$36,000 in Year 1 and $64,800 in Year 2

$16,500 in Year 1 and $33,000 in Year 2.

$16,000 in Year 1 and $32,000 in Year 2.

$25,000 in Year 1 and $33,000 in Year 2.

2)

On April 30, Year 1, Tilton Products purchased machinery for $110,000. The useful life of this machinery is estimated at 10 years, with an $30,000 residual value. Tilton uses a calendar year-end for financial reporting.

Assume that in its financial statements, Tilton Products uses the 200%-declining-balance method and the half-year convention. Depreciation expense in Year 1 and Year 2 will be

$11,000 in Year 1 and $19,800 in Year 2

$13,750 in Year 1 and $24,063 in Year 2.

$27,500 in Year 1 and $24,063 in Year 2

$27,500 in Year 1 and $22,625 in Year 2.