Given the following information,calculate the straight-line depreciation rate for the first year using the midmonth convention.Cost recovery period: 27 ½ years,Date of purchase: April 10^th.

Question

Quizplus · Accepted Answer

The mid-month convention treats the asset as if it were purchased on the 15th day of the month. So, the asset was purchased on April 15th. The cost recovery period is 27 ½ years, or 330 months. The straight-line depreciation rate is calculated as follows:Depreciation rate = (1 / Cost recovery period) x (12 / Number of months in a year)= (1 / 330) x (12 / 12)= 0.0363, or 3.63%

Given the Following Information,calculate the Straight-Line Depreciation Rate for the First