Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

8. Long Lived Assets

Depreciation: Summary of Main Methods

Financial Accounting

8. Long Lived Assets

Depreciation: Summary of Main Methods

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Multiple Choice

Which depreciation convention is generally applied to tangible personal property under U.S. tax rules?

Half-year convention

Full-year convention

Mid-month convention

Mid-quarter convention

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Verified step by step guidance

Understand the concept of depreciation conventions: Depreciation conventions are rules that determine how depreciation is calculated for assets during the year they are placed in service or disposed of. These conventions are used to simplify the calculation process under U.S. tax rules.

Learn about the half-year convention: This convention assumes that all tangible personal property placed in service or disposed of during the year is treated as if it was placed in service or disposed of at the midpoint of the year. It is the most commonly applied convention for tangible personal property under U.S. tax rules.

Explore the full-year convention: This convention assumes that the asset is in service for the entire year, regardless of when it was actually placed in service. It is less commonly used for tangible personal property.

Understand the mid-month convention: This convention is typically applied to real property and assumes that the asset is placed in service or disposed of at the midpoint of the month in which the transaction occurs.

Learn about the mid-quarter convention: This convention applies if more than 40% of the total tangible personal property is placed in service during the last quarter of the year. It assumes the property is placed in service at the midpoint of the quarter.