Q: Depreciation

On Oct 1, 2019, Alco Industries purchased new equipment at a cost of $525,000. Useful life of this

equipment was estimated at 5 years, with a scrap value of $25,000. The accounting period ends

each year at December 31. The company policy is to charge depreciation from the month of

purchase. Prepare a depreciation schedule for 5 years under the following methods:

(a) Straight-line method

(b) Double declining method, with the half year convention.