Harrison Acquires $65,000 of 5-Year Property in June 2014 That

question 97

Multiple Choice

Harrison acquires $65,000 of 5-year property in June 2014 that is required to be depreciated using the mid-quarter convention (because of other purchases that year) .He did not elect Sec.179 immediate expensing.Bonus depreciation was not available.If Harrison sells the property on August 23,2016,what is the amount of depreciation claimed in 2016?

• A)$6,500.00
• B)$7,312.50
• C)$11,700.00
• D)$9,289.00

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Definitions:

Total Contribution Margin

The difference between total sales revenue and total variable costs, measuring how much revenue covers fixed costs and profits.

CVP Graph

A visual representation of the Cost-Volume-Profit analysis that illustrates the relationships between costs, volume, and profit.

Total Fixed Expenses

Total fixed expenses refer to the sum of all costs that do not change with the level of production or sales over a certain period.

Total Variable Expenses

The sum of all costs that vary directly with the level of production or sales volume over a specific period.