Bonnie Jo Used Two Assets During the Current Year

question 15

Essay

Bonnie Jo used two assets during the current year. The first was computer equipment with an original basis of $15,000, currently in the second year of depreciation, and under the half-year convention. This asset was disposed of on October 1st of the current year. The second was furniture with an original basis of $24,000 placed in service during the first quarter, currently in the fourth year of depreciation, and under the mid-quarter convention. What is Bonnie Jo's depreciation expense for the current year? (Round final answer to the nearest whole number) (Use MACRS Table 1 and Table 2)

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Definitions:

Job Order

An order for products or services issued by a company to manage production or service tasks as per client requirements.

Customer Specifications

Customer specifications are the detailed descriptions or requirements given by a customer regarding how a product or service should be delivered or executed.

Process Cost Systems

An accounting system used to track and assign production costs to units of output in industries where products are uniformly produced.

Industries

Broad categories of business activities focused on the production or supply of goods, services, technology, or information.