n April 2, 2014, Victor, Inc. acquired a new piece of filtering


Question Description:

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n April 2, 2014, Victor, Inc. acquired a new piece of filtering equipment. The cost of the equipment was $420,000 with a residual value of $30,000 at the end of its estimated useful lifetime of 5 years. Assume that in its financial statements, Victor uses straight-line depreciation and rounds depreciation for fractional years to the nearest whole month. Depreciation recognized on this equipment in 2014 and 2015 will be: A.$78,000 in 2014 and $78,000 in 2015. B.$84,000 in 2014 and $84,000 in 2015. C.$30,000 in 2014 and $78,000 in 2015. D.$58,500 in 2014 and $78,000 in 2015. Assume that in its financial statements, Victor uses straight-line depreciation and the half-year convention. Depreciation recognized on this equipment in 2014 and 2015 will be: A.$39,000 in 2014 and $78,000 in 2015. B.$58,500 in 2014 and $67,200 in 2015. C.$30,000 in 2014 and $78,000 in 2015. D.$84,000 in 2014 and $67,200 in 2015. If Victor uses straight-line depreciation with the half-year convention, the book value of the equipment at December 31, 2015 will be: A.$264,000. B.$262,500. C.$303,000. D.$312,000.

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