Problem 9.3A (Static) Issues Involving Alternative Depreciation Methods (LO9-1, LO9-2, LO9-3, LO9-5) Hills Hardware purchased new shelving for its store on April 1, 2021. The shelving is expected to have a 20-year life and no residual value The following expenditures were associated with the purchase. Cost of the shelving Freight charges Sales taxes Installation of shelving Cost to repair shelf damaged during installation $ 12,000 520 780 2,700 400 Required: 01. Compute depreciation expense for the years 2021 through 2024, using the straight-line, with fractional years rounded to the nearest whole month, 0-2. Compute depreciation expense for the years 2021 through 2024, using the 200 percent declining balance, using the half year convention 2-3. Compute depreciation expense for the years 2021 through 2024, using the 150 percent declining balance, using the half-year convention b. What method of depreciation would Hills Hardware use on its federal tax return to achieve the lowest amount of taxable income in the early years of an asset's life? c-1. Which of the depreciation methods applied in part a will result in the lowest reported book value at the end of 2024? c-2. Is book value an estimate of an asset's fair value? d-1. Assume that Hills Hardware sold the old shelving that was being replaced. The old shelving had originally cost $9,000. Its book value at the time of the sale was $400. Record the sale of the old shelving for $1,100 cash. d-2. Assume that Hills Hardware sold the old shelving that was being replaced. The old shelving had originally cost $9,000. Its book value at the time of the sale was $400. Record the sale of the old shelving for $175 cash. Com RG 2 Red Di Reg C2 Reg A2 Rega Req A3 Red 1 Compute depreciation expense for the year 2021 through 2024, using the straight line with fractional year rounded to the nearest whole month Depreciation Expense Accumulated Depreciation Book Vale 2021 2022 2023 2024 Reg A2 > Reg 02 Req AI Reg A2 Reg 01 Req A3 Red B Reg C2 ReqC1 Compute depreciation expense for the years 2021 through 2024, using the 200 percent declining-balance, using the half-year convention. (Round your answers to the nearest whole dollar.) Year Depreciation Expense Accumulated Depreciation Book Value 2021 2022 2023 2024 Reg A1 Reg A2 Reg A3 Reg B Req ci Reg 2 Reg 01 Reg D2 Compute depreciation expense for the years 2021 through 2024, using the 150 percent declining balance using the half year convention. (Round your answers to the nearest whole dollar) Year Depreciation Express Accumulated Depreciation Book Vakie 2021 2022 2023 2024 Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Req A3 Req Reci Req C2 Reg Di Red D2 What method of depreciation would Hills Hardware use on its federal tax return to achieve the lowest amount of taxable income in the early years of an asset's life? To achieve the lowest amount of taxable income in the early years Hills would use Complete this question by entering your answers in the tabs below. Reg 02 Reach Reg 1 Re Reg C2 Reg A1 Reg A2 Reg A3 Which of the depreciation methods applied in part a will result in the lowest reported book valo at the end of 20247 Depreciation methods residing in lowest book value in Reg C2 > ( Req8 Complete this question by entering your answers in the tabs below. Reg 2 Reg 02 Reg Di Regci Req Reg A1 Reg A2 Reg A3 Is book value an estimate of an asset's fair value? Book value is an estimate of an asset's fair value Req 01 > 1 Record sale of shelving for $1,100 cash. Note: Enter debits before credits Debt Credit General Journal Transaction View general journal Clear entry Becord entry Redo2 Red CI Reg C2 Reg D1 Req Ai Reg A2 Reg A3 Reg B Assume that Hills Hardware sold the old shelving that was being replaced. The old shelving had originally cost $9,000. Its book value at the time of the sale was $400. Record the sale of the old shelving for $175 cash. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet 1 Record sale of shelving for $175 cash. Note Unter debits before credits Debit Credit General Journal Transaction View general Journal Clear entry Record entry