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The following information relates to Riggs Corp.s purchase of equipment on 15 June 2017:

Invoice price	$	448,000
Repairs required in the first month of use		2,400
Shipping costs		2,930
Installation		5,000
Testing		10,000

The equipment was installed and tested during the week of 22 June 2017. Riggs paid the invoice price on 1 July 2017. The equipment was ready for use on 30 June and put into production on 3 July 2017. Riggs uses straight-line depreciation for the companys equipment and expects to use the asset for six years. Component parts are not significant and need not be recognized and depreciated separately. The estimated residual value is zero. The companys fiscal year-end is 31 December. Required: 1. Prove that the book value which Riggs will report for the equipment purchase is $465,930. Show your work.

2. Compute depreciation expense for 2017, using the straight-line method, under each of the following assumptions: (Round your answers to nearest whole dollars.)

1. Exact, to the closest month

2. Full first-year convention

3. Half-year convention

3. Prepare the journal entry to record depreciation expense, assuming Riggs uses the straight-line method and the half-year convention.

General Journal
Date	Account Titles and Explanation	Debit	Credit

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