Laidlaw Trucking purchased on October 1, 2014, $110,000 of furniture that was put into service on November 10, 2014. The furniture will be used for five years and then donated to a charity. Complete the schedule below by calculating annual depreciation for 2014, 2015, and 2016, applying the half-year convention for partial periods. The year-end is December 31.

Analysis Component: What effect would it have on the 2014 financial statements  if the furniture had been debited to an expense account when purchased instead of being recorded asPPE?

 

Given Data:
Cost of furniture			$ 110,000
Date purchased			October 1, 2014
Expected useful life (years)			5
Estimated resale value			$ -0-
Company applies the half-year convention for partial periods.

Transcribed Image Text:

Depreciation Year Stralght-Line Double-Decllning-Balance