Adkins Bakery Uses the Modified Half-Month Convention to Calculate Depreciation

question 44

Multiple Choice

Adkins Bakery uses the modified half-month convention to calculate depreciation expense in the year an asset is purchased or sold.Adkins has a calendar year accounting period and uses the straight-line method to compute depreciation expense.On March 17,2018,Adkins acquired equipment at a cost of $200,000.The equipment has a residual value of $45,000 and an estimated useful life of 3 years.What amount of depreciation expense will be recorded for the year ending December 31,2018? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

• A) $51,667
• B) $43,056
• C) $38,750
• D) $25,833

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Definitions:

Consumption

The process by which goods and services are utilized by individuals or groups to satisfy personal or collective needs or desires.

Production

The process of creating, manufacturing, or producing goods, services, or information, often involving a combination of labor, materials, and capital.

Legal entity

An organization or structure that is recognized by the law as capable of rights and duties.

Ethical standard

Ethical standard refers to the principles that guide moral conduct within a profession or organization, outlining acceptable behaviors and practices that ensure fair and just operations.