Belton Corporation uses straight-line depreciation and,for assets acquired during the fiscal year,follows the policy of recording a full month's depreciation for all assets acquired on or before the 15^th of the month.No depreciation is recorded for the month if an asset is acquired after the 15^th.On May 22,20A,Belton purchased a car that cost $22,000 which had an estimated residual value of $2,000 and an estimated useful life of five years.To the nearest dollar,what is the amount of depreciation that should be recorded on the car for 20A? A)$2,000 B)$2,333 C)$2,667 D)$4,000

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Using the straight-line method, the annual depreciation would be ($22,000 - $2,000) / 5 = $4,000. Since the car was purchased on May 22, it was acquired after the 15th of May, so no depreciation should be recorded for that month. However, since a full month's depreciation is recorded for assets acquired on or before the 15th of the month, Belton should record 11 months of depreciation for 20A. Therefore, the amount of depreciation that should be recorded on the car for 20A is (11/12) x $4,000 = $3,667, which rounded to the nearest dollar is $2,333. The correct answer is B.

Belton Corporation Uses Straight-Line Depreciation And,for Assets Acquired During the Fiscal