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.