Question
Ron Swanson owns Swansons Woodcraft Connection, a store dedicated to woodworking tools, supplies and design plans. On May 1, Year One, Swansons purchased a new
Ron Swanson owns Swansons Woodcraft Connection, a store dedicated to woodworking tools, supplies and design plans. On May 1, Year One, Swansons purchased a new warehouse to store additional inventory to help meet customer demand. Ron paid $50,000 for the warehouse and estimates that it will be used for twenty years. Salvage value is $5,000 and Swansons uses the straight-line method of depreciation. Swansons Woodcraft Connection has a December 31st year-end. What is the amount of depreciation to be taken in Year One? The amount of depreciation to be taken in Year One is:
Here was my answer:
(50,000 - 5,000)/20 years = 2,250, and because of the half-year convention I answered $1,125 since that is half of $2,250. It keep telling me my answer is wrong, can someone please help me find what I'm doing wrong here?
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