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




Question;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.)


Paper#37194 | Written in 18-Jul-2015

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