AE11-15 (a) – (Depreciation for Fractional Periods)

$14.00

Description

On
March 10, 2014, No Doubt Company sells equipment that it purchased for $307,200
on August 20, 2007.

It was originally estimated that the equipment would have a life of 12
years and a salvage value of $26,880 at the end of that time, and depreciation has
been computed on that basis. The company uses the straight-line method of
depreciation.

Compute the depreciation charge on this
equipment for 2007, for 2014, and the total charge for the period from 2008 to
2013, inclusive, under each of the six following assumptions with respect to
partial periods. (Round all computations and final answers to 0 decimal places,
i.e. 2,250. If answer is zero, please enter 0, do not leave any fields blank.)

Depreciation is computed for the exact period of
time during which the asset is owned. (Use 365 days for base.)
Depreciation is computed for the full year on
the January 1 balance in the asset account.
Depreciation is computed for the full year on
the December 31 balance in the asset account.
Depreciation for one-half year is charged on
plant assets acquired or disposed of during the year.
Depreciation is computed on additions from the
beginning of the month following acquisition and on disposals to the beginning
of the month following disposal.
Depreciation is computed for a full period on
all assets in use for over one-half year, and no depreciation is charged on
assets in use for less than one-half year. (Use 365 days for base.)

Reviews

There are no reviews yet.

Be the first to review “AE11-15 (a) – (Depreciation for Fractional Periods)”

Your email address will not be published. Required fields are marked *