During the year, Garbin Corporation (a calendar-year corporation that manufactures furniture) purchased the following assets: $\begin{array}{lcr}
\underline{\text { Date }} & \underline{\text { Asset }}& \underline{\text { Cost}} \
\text { February 15 } & \text {Tools } & \$40,000 \
\text { March 3 } &\text { Machines}&50,000 \
\text { October 6 } & \text { Office Building }& 110,000
\end{array}$
In computing depreciation of these assets, which of the following averaging conventions will be used?
A)Half-year and mid-month
B)Mid-quarter and mid-month
C)Half-year, mid-quarter, and mid-month
D)Mid-quarter only

Question

During the year, Garbin Corporation (a calendar-year corporation that manufactures furniture) purchased the following assets: $\begin{array}{lcr}
\underline{\text { Date }} & \underline{\text { Asset }}& \underline{\text { Cost}} \
\text { February 15 } & \text {Tools } & \$40,000 \
\text { March 3 } &\text { Machines}&50,000 \
\text { October 6 } &  \text { Office Building }& 110,000 
\end{array}$
 In computing depreciation of these assets, which of the following averaging conventions will be used?
A)Half-year and mid-month
B)Mid-quarter and mid-month
C)Half-year, mid-quarter, and mid-month
D)Mid-quarter only

Quizplus · Accepted Answer

The half-year convention is used for assets placed in service or disposed of during the first half of the year, and the mid-month convention is used for assets placed in service or disposed of during the second half of the year.

During the Year, Garbin Corporation (A Calendar-Year Corporation That Manufactures