On April 30, Year 1, Tilton Products purchased machinery for $120,000. The useful life of this machinery is estimated at 8 years, with an $10,000 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:

Multiple Choice

• $15,000 in Year 1 and $30,000 in Year 2.

• $30,000 in Year 1 and $26,250 in Year 2.

• $30,000 in Year 1 and $22,500 in Year 2.

• $15,000 in Year 1 and $26,250 in Year 2.