ANSWERS TO QUESTIONS

$31,000 X 1/5 X 1/2 = $3,100 depreciation for tax purposes. *EXERCISE 11-26 (Continued) (b) (1) $31,000 X 20% X 10/12 = $5,167 depreciation expense for book purposes. $31,000 X 40% X 1/2 = $6,200 depreciation expense for tax purposes. Differences will occur for the following reasons: half-year convention used for tax purposes. ................
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