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:

Mg/dL

Milligrams per deciliter, a unit of measurement commonly used in blood and other bodily fluid analyses to quantify the concentration of substances.

International Normalized Ratio (INR)

A measure used in blood tests to determine the clotting tendency of blood, helping to monitor and adjust the dose of anticoagulants.

Prothrombin Time (PT)

A blood test measure that evaluates how long it takes blood to clot, primarily used to assess blood coagulation pathways.

Creatinine Kinase (CK)

An enzyme found in the heart, brain, skeletal muscle, and other tissues, used as a marker of muscle injury.