Question

In: Finance

1. A truck is purchased 3/1/19 for $10,000; a machine is purchased 7/1/19 for $20,000; and...

1. A truck is purchased 3/1/19 for $10,000; a machine is purchased 7/1/19 for $20,000; and office furniture is purchased 10/1/19 for $5,000. No other assets are placed in service during the year. No 179 or additional depreciation is elected.

What is the proper convention?                            [ Select ]                       ["mid quarter", "half year", "mid month"]      

The depreciation for the truck for 2109 is                            [ Select ]                       ["2,000", "1,429", "3,500", "1,500"]      

The depreciation for the machine for 2019 is                            [ Select ]                       ["4,000", "2,142", "7,000", "2,858"]      

2. A truck is placed in service 5/1/19 with a cost of $5,000 and a machine is placed in service 10/1/19 with a cost of $20,000. No other assets are placed in service during the year. No 179 or additional depreciation is elected.

What is the proper convention?                            [ Select ]                       ["mid quarter", "half year", "mid month", ""]      

The depreciation for the truck for 2019 is:                            [ Select ]                       ["5,000", "1,000", "1,250", "50"]      

Solutions

Expert Solution

1) The proper convention should be half yearly. The depreciation for the truck is $2000 and for the machine is $4000.

2) The proper convention is half yearly. The depreciation for the truck is $1000.


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