Acompany that uses accrual-basis accounting purchased equipment on july 1 of the current year for $20,000. the company expects to use the equipment consistently for four years, and will record depreciation in its december 31 financial statements.

$2,500

Explanation:

Acquisition cost = $20,000

Expected useful life = 4 years

Therefore, annual depreciation =

However, given that there are 6 months from July 1 (the date of acquisition) to December 31 (the end of the period), the amount of depreciation to be recorded within that period

=

= 6/12 * 5,000

= $2,500.

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101