Detailed Answer
(c) A cost charged to expense in an annual period
should be allocated among the interim periods which clearly
benefit from the expense through the use of accruals and/or deferrals.
Both yearly bonuses and the use of an asset (depreciation
expense) benefit the entire year. The expense for the six month
interim statement should be ($60,000 + $120,000) ÷ 2 =
$90,000.