Harrison Acquires $65,000 of 5-Year Property in June 2012 That

question 53

Multiple Choice

Harrison acquires $65,000 of 5-year property in June 2012 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 23,2014,what is the amount of depreciation claimed in 2014?

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

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Definitions:

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated by subtracting liabilities from the total value of assets.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.

Component Cost

The expense associated with acquiring or manufacturing each individual part of a product or service.

Flotation Cost

The total costs associated with issuing new securities, including underwriting fees and other expenses.