question archive Question: I would like to be clarified on this adjustment particularly on depreciation
Subject:AccountingPrice:2.86 Bought3
Question: I would like to be clarified on this adjustment particularly on depreciation. My question would be, how did you come up with 36, 500 depreciation on building and 109, 000 on equipment. I got the formula of (73 000 x 6)/12 and (218 000 x 6)/12 to get the amounts of 36, 500 and 109, 000. But where did you get the value of 6? i mean, why multiplied to 6 months?
Thanks in advance.
Information:
The following contains the cost and annual depreciation for buildings and equipment, all of which were purchased before the current year:
Account Cost Annual Depreciation
Buildings 1, 850, 000 73, 000
Equipment 2, 180, 000 218, 000
Answer for adjusting entry:
Purchased 3 times