On September 6, 2017, East River Tug Co. purchased a new tugboat for $400,000. The estimated life of the boat was 20 years, with an estimated residual value of $40,000.

Compute the depreciation on this tugboat in 2017 and 2018 using the following methods. Apply the half-year convention. (If necessary, round to the nearest dollar.)

	2017	2018
(a) Straight-line	$________	$________
(b) 200%-declining-balance	$________	$________
(c) 150%-declining-balance	$________	$________

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18(b)

On March 1, 2018, five-year bonds are sold for $520,000 that have a face value of $500,000 and an interest rate of 10%. Interest is paid semi-annually on March 1 and September 1. Using the straight-line amortization method, prepare the borrower's journal entries on:

March 1, 2018; September 1, 2018; December 31, 2018; and March 1, 2019.

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3/1/18
9/1/18
12/31/18
3/1/19