During the year, Garbin Corporation (a calendar-year corporation that manufactures furniture) purchased the following assets:
$$\begin{array} { l c r }
\text { Date } & { \text { Asset } } & { \text { Cost } } \
\text { February 15 } & \text { Tools } & \$ 40,000 \
\text { March 3 } & \text { Machines } & 50,000 \
\text { October 6 } & \text { Office Building } & 110,000
\end{array}$$
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:
$$\begin{array} { l c r } 
\text { Date } &  { \text { Asset } } & { \text { Cost } } \
\text { February 15 } & \text { Tools } & \$ 40,000 \
\text { March 3 } & \text { Machines } & 50,000 \
\text { October 6 } & \text { Office Building } & 110,000
\end{array}$$
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