[john-stringer]

Hi

I came across a TBS problem in Wiley for depreciation that I need help with.

The first part of the TBS was assessing how much depreciation to take for a computer purchased. The trick the question maker tried was that the computer was used 40% for business… ok I did fine and picked up on it… use ADS half year convention etc for 40% only but

(here’s where my confusion comes in)

immediately after the 1st portion the 2nd part of the problem had me aggregate 3 other assets bought during the year and they tried to trick me again, 40% purchased in 4th quarter. So it’s mid quarter.

Now the first time tackling the question I added all the assets, computer in first portion and the other 4 assets mentioned in the 2nd portion and I assumed we had to use mid-quarter for all of them!

Why does the question answers show half year for the computer and not mid quarter?! It seems contradictory and some assumptions were made on my part. Please help!