Vaughn Manufacturing has estimated that total depreciation expense for the year ending December 31, 2021 will amount to $591000, and that 2021 year-end bonuses to employees will total $1240000. In Vaughn's interim income statement for the six months ended June 30, 2021, what is the total amount of expense relating to these two items that should be reported?

$915,000

Explanation:

Because half of the depreciation expense, and the expense on bonuses has already been reported by June 30,2021 (the half of the year), only hafl of the total money spent on the two items will have to be reported for the interim income statement ended on December 31, 2021:

$591,000 / 2 = $295,500

$1,240,000 / 2 = $620,000

Now, we simply add up these two figures:

$295,500 + $620,000 = $915,000

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