On April 30, 2017, Tilton Products purchased machinery for $55,000. The useful life of this machinery is estimated at 8 years, with an $5,000 residual value.

Assume that in its financial statements, Tilton Products uses straight-line depreciation and the half-year convention. Depreciation expense recognized on this machinery in 2017 and 2018 will be:

Multiple Choice

• $3,750 in 2017 and $7,500 in 2018.
• $3,125 in 2017 and $6,250 in 2018.
• $6,875 in 2017 and $3,438 in 2018.
• $4,687 in 2017 and $6,875 in 2018.