Question: ABC Co. uses half year convetion method for depreciation. The company purchased an equipment in December, 2021 that costs $75,000 with a useful life

ABC Co. uses half year convetion method for depreciation. The company purchased

ABC Co. uses half year convetion method for depreciation. The company purchased an equipment in December, 2021 that costs $75,000 with a useful life of 10 years and an estimated salvage value of $5,000. How much is the depreciation expense for 2021 (assume that there is no more depreciable asset)?

Step by Step Solution

★★★★★

3.52 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Step by Step Explanation i The halfyear convention is used to calculate depreciation for ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The following questions are adapted from a variety of sources including questions developed by the AICPA Board of Examiners and those used in the Kaplan CPA Review Course to study property, plant,...

Jen and Berry's sells ice-creams from its factory-shop in Petone. There is a managing director (Maynard Dibble), a marketing manager (Mary Salman) and a production manager (Peter Pritchard). Maynard...

The following data relate to the Plant Assets account of Faith Hill, Inc. at December 31, 2008. The following transactions occurred during 2009. (a) On May 5, Asset A was sold for $13,000 cash. The...

Virginia Company operates a real estate abstract, title, and insurance company. Below are selected transactions and events that occurred during the years 2016 to 2019. Using those transactions and...

Wheeless Company operates a real estate abstract, title, and insurance company. Below are selected transactions and events that occurred during the years 2019 to 2022. Using those transactions and...

Pryor Company's net incomes for the past three years are presented below: After the 2013 reported year-end, the following items come to your attention: Pryor bought a truck January 1, 2010 for...

Alfie Lockyer decides to start up a business as a sole trader on 1 July 2020. Alfies Rugby League Memorabilia and Framing Services will sell a range of different memorabilia items including framed...

Note: Knowledge of the time value of money is necessary for this problem (see Appendix 4A). Kimberly Sisters purchased equipment for $80,000 on January 1, 1996. Kimberly can use the...

Porter Inc. acquired a machine that cost $720,000 on October 1, 2019. The machine is expected to have a four-year useful life and an estimated salvage value of $80,000 at the end of its life. Porter...

Porter, Inc., acquired a machine that cost $720,000 on October 1, 2010. The machine is expected to have a four-year useful life and an estimated salvage value of $80,000 at the end of its life....

What is a call option? A put option? Under what circumstances might you want to buy each? Which one has greater potential profit? Why?

Gas at 27 C and 5 MPa expands adiabatically against a pressure of 1 atmosphere in such a way that the final volume triples. What is the final temperature of the system? Calculate Q, W, E, H. Cp = 5/2...

Threats to a restaurant's cash assets can occur because of mismanagement relating to which of the following systems? Option A revenue collection Option B accounts payable Option C revenue control...

Lucile Bluth has been asked by the Board of Directors to provide a brief presentation at the upcoming meeting to identify the root cause of project G.O.B's challenges as well as identify a feasible...

In NewShoes you will make marketing decisions for each region in which you are selling your shoes. When setting price, you need to consider both the unit cost of your product and expectations of...

BuyCo is a privately held technology developer and manufacturer in the transportation industry. On October 31, 20X1, BuyCo entered into an agreement with SellCo to purchase certain assets and assume...

1. It is March 26 and you hold a $1mm (market value) long position in the 1-yr zero-coupon bond. Using modied durations, determine how much of the 5-yr zero-coupon bond you need to short so that your...

How to solve this question 2 3 8. Given that a = -2 , b= 1, c=\\-5 and d = -3 . . calculate: 2 (a) a. (b+ c) (b) (b-a).(d-c) (c) (b + d).(2a) [7 marks]

Homemade Leverage and WACC ABC Co, and XYZ Co, are identical firms in all respects except for their capital structure. ABC is all equity financed with $800,000 in stock. XYZ uses both stock and...

In preparation for significant international operations, ABC Co. has adopted a plan to gradually shift to the same accounting methods as used by its international competitors. Part of this plan...

In preparation for significant international operations, ABC Co. has adopted a plan to gradually shift to the same accounting policies as used by its international competitors. Part of this plan...

ABC Co. and XYZ Co. are identical firms in all respects except for their capital structure. ABC is all equity financed with $650,000 in stock. XYZ uses both stock and perpetual debt; its stock is...

ABC Co. and XYZ Co. are identical firms in all respects except for their capital structures. ABC is all-equity financed with $500,000 in stock. XYZ uses both stock and perpetual debt; its stock is...

ABC Co. and XYZ Co. are identical firms in all respects except for their capital structure. ABC is all equity financed with $600,000 in stock. XYZ uses both stock and perpetual debt; its stock is...