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Posted: June 12th, 2023

Kentucky ACC ACC201 April 2, 2014, Victor, Inc. acquired a new piece of filtering equipment

n April 2, 2014, Victor, Inc. acquired a new piece of filtering equipment. The cost of the equipment was $420,000 with a residual value of $30,000 at the end of its estimated useful lifetime of 5 years.Assume that in its financial statements, Victor uses straight-line depreciation and rounds depreciation for fractional years to the nearest whole month. Depreciation recognized on this equipment in 2014 and 2015 will be:A.$78,000 in 2014 and $78,000 in 2015.B.$84,000 in 2014 and $84,000 in 2015.C.$30,000 in 2014 and $78,000 in 2015.D.$58,500 in 2014 and $78,000 in 2015.Assume that in its financial statements, Victor uses straight-line depreciation and the half-year convention. Depreciation recognized on this equipment in 2014 and 2015 will be:A.$39,000 in 2014 and $78,000 in 2015.B.$58,500 in 2014 and $67,200 in 2015.C.$30,000 in 2014 and $78,000 in 2015.D.$84,000 in 2014 and $67,200 in 2015.If Victor uses straight-line depreciation with the half-year convention, the book value of the equipment at December 31, 2015 will be:A.$264,000.B.$262,500.C.$303,000.D.$312,000.

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