I know the answer but I want to know why we use half year convention for both the van and the machine
Chapter 10 In-class exercise While completing undergraduate school work in information systems, Dallin Bourne and Michael Banks decided to start a business called ISys Answers which was a technology support company. During year 2015, they bought the following assets and incurred the following fees at start-up: Purchase Date Basis $15,000 October 30, 15 Computers 65-year) Office equipment (-year) October 30, 15 S12,000 $10.00 October 30, 15 Furniture October 30, 15 $15,000 Start-up costs In April of 2016, they decided to purchase a customer list from a company started by fellow information systems students preparing to graduate who provided virtually the same services. The customer and the sale was completed on April 30th. During their summer break, Dallin and Michael passed on internship opportunities in an attempt to really grow their business into something they could do full time after graduation. In the summer, they purchased (for transportation, not considered a luxury auto) and a pinball machine (to help enhance creativity and to relieve stress and relax) bought the mini van on June 15, 2016 fors18,000 and spent S3,000 getting it ready to put into service. $21,000 we June 15, 16 Nan (5-year) S4,000 July 1,16 (-year) Customer List 179 expense or bonus depreciat Hint: First determine the character ofeach ofthe assets. Listed Property following. passenger automobiles. Listed property generally includes the pounds or less. See Limits for lends itself to personal use, such as Passenger automobiles weighing 6,000 of property Any other property used for transportation if the nature the motorcycles, pick-up trucks, sport utility vehicles, etc. photographic, phonographic, Any property used for entertainment or recreational purposes (such as communication, and video recording equipment) Computers or peripheral