Hills Hardware purchased new shelving for its store on April $1,2024.$ The shelving is expected to have a $20-$year life and no residual value. The following expenditures were associated with the purchase:

Instructions

a$.$ Prepare a depreciation schedule for the years $2024$ through $2027$ under each depreciation method listed as follows. Include annual depreciation expense, accumulated depreciation, and book value for each year.

Straight$-$line, with fractional years rounded to the nearest whole month.

$200$ percent declining$-$balance, using the half$-$year convention.

$150$ percent declining$-$balance, using the halfyear convention.

c$.$ Which of the depreciation methods applied in part a will result in the lowest reported book value at the end of $2027?$ Is book value an estimate of an asset's fair value? Explain.

The shelving was sold for $$1,100$ cash.

The shelving was sold for $$175$ cash.