Peach Corp.has estimated that total depreciation expense for the 2017 calendar year will be $60,000, and that 2017 year-end bonuses to employees will be $120,000.In Peach's interim income statement for the six months ended June 30, 2017, what total expense relating to these two items should be reported?

Question

Quizplus · Accepted Answer

The total expense for the six months should include half of the annual depreciation ($30,000) and half of the annual bonuses ($60,000), totaling $90,000.