Use the information from Exercise 17, except assume that the production equipment was purchased on October 1,

Question:

Use the information from Exercise 17, except assume that the production equipment was purchased on October 1, 2009.
Required:
(a) Compute depreciation expense on the production equipment for 2009, 2010, and 2011 using the
(1) Straight-line depreciation method
(2) Double-declining-balance depreciation Method
(b) Prepare the journal entries to record the acquisition of the equipment and the ﬁrst year’s depreciation using the straight-line depreciation method.