Calculate the year 1 depreciation of equipment placed into service on December 15. The cost was $85,000. The asset has a 7 year recovery period. Assume that this is the only property that was placed into service during the year. Hint: You will need to determine the depreciation convention based on the date the company's asset was placed into service.

A. $3,035

B. $4,250

C. $17,000

D. $21,250

A company purchased office furniture in the 2nd quarter of year 1 for $8,000. The next year, it sells all of its office furniture in the 4th quarter of year 2. What is the companys depreciation on the office furniture in year 2 assuming the office furniture has a recovery period of 7 years and the company uses the mid-quarter depreciation convention?

A. $535

B. $1,250

C. $1,643

D. $1,878