Used bottling equipment was acquired by Summit Brewing at a cost of $900,000 on August 1, 2010. Its estimated salvage value is $ -0- and its expected life is five years. Calculate the depreciation expense (round to the nearest dollar) by each of the following methods, showing all of your calculations. For the year of acquisition, use the mid-year convention. Why are we using the mid year convention? A. Straight-line for the calendar years 2010 and 2011, and 2012. B. Double-declining-balance for the calendar years 2010 and 2011, and 2012. II. A new building was acquired by Summit Brewing at a cost of $1,950,000 on February 9, 2011. The useful life is 39 years. Salvage value is zero. Compute depreciation for 2011 and 2012 (straight line method). For the year placed in service, use the mid-month convention. Why are we using the mid-month convention? III. A new truck was acquired by Summit Brewing at a cost of $90,000 on April 1, 2011. The useful life is 5 years. Salvage value is zero. Additionally, brewing equipment was acquired on October 1, 2011 at a cost of 61,600. The useful life is 7 years and salvage value is zero. Compute depreciation for 2011 and 2012 using the double declining balance method. For the year placed in service, use the mid-quarter convention. Why is the mid-quarter convention needed