Harrison Acquires $65,000 of 5-Year Property in June 2011 That

question 52

Multiple Choice

Harrison acquires $65,000 of 5-year property in June 2011 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 23,2013,what is the amount of depreciation claimed in 2013?

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

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Definitions:

Liabilities

Financial obligations of a business that represent claims against its assets by outsiders.

Stockholders' Equity

Represents the ownership interest of shareholders in the assets of a company, calculated as total assets minus total liabilities.

Creditors' Risk

The risk to lenders that a borrower will not repay a loan or other credit extended, potentially leading to financial loss.

Liabilities

Economic dues a company is obligated to clear with others, which involves dispensing economic benefits progressively over time.