1. RayCo uses the straight-line method. Assets purchased between the 1^st and 15^th are depreciated for the entire month; assets purchased after the 15^th as though they were acquired the following month. On May 12, 20X1, RayCo purchases for $25,000 furniture that it expects to last for 10 years and to have a residual value of $1,000. What is 20X1 depreciation expense for the furniture?

   		$1,600
   		$2,400
   		$1,200
   		$1,400

1. MyCo uses the straight-line method. Assets purchased between the 1^st and 15^th are depreciated for the entire month; assets purchased after the 15^th as though they were acquired the following month. On April 22, 20X1, MyCo purchases for $50,000 equipment that it expects to last for 10 years and to have a residual value of $5,000. What is 20X2 depreciation expense for the equipment?

   	A.	$3,375
   	B.	$3,000
   	C.	$4,500
   	D.	$5,000