Question

*Exercise 11-15 a On March 10, 2022, Skysong Company sells equipment that it purchased for $203,520 on August 20, 2015. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $17,808 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 2015, for 2022, and the total charge for the period from 2016 to 2021, inclusive, under each of the six following assumptions with respect to partial periods. (Round depreciation per day to 2 decimal places, e.g. 15.64 and final answers to I decimal places, e.g. 45,892.) 2015 2016-2021 Inclusive 2022 $ 1. Depreciation is computed for the exact period of time during which the asset is owned. (Use 365 days for base and record depreciation through March 9, 2022.) 2. Depreciation is computed for the full year on the January 1 balance in the asset account. 3. Depreciation is computed for the full year on the December 31 balance in the asset account. 4. Depreciation for one-half year is charged on plant assets acquired or disposed of during the year. 5. Depreciation is computed on additions from the beginning of the month following acquisition and on disposals to the beginning of the month following disposal. 6. 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.) $ $C $ $

Answer 1

Answer Page No 0 Depreciation change of the equipment for 2015, for doga & the test elle change for the periode 2016 notes inclusive :- Depreciation' for the year undan straight line frethod = cord of equipment - salvoge value Life of assets $203520 - $17808 12 years R$ 15476 ( Augro to dec31) Depreciation in 2015 = 15476 X 133 day 365 days = $5639 11 115 = 15476 x 133 day / 133 days G. Jan to Mar 9 34:46 x 68 days Depreciation in wood - 15446 x 68 days 365 , & 2883 Depreciation in 2016-2021 Önclusive - [5476 X 6 years = $92856

Page. No Depreciation in 2015 - $0 Because the equipment ans purchased on Aug 20, 2015 same was not included in balance as of Tan Ist 2015 and Depreciation in 2016 - 2001 = $92856 Became the depreciation for 6 years Depreciation in 2000 = $15486 Because the depreciation for full year Depreciation in 2015 a $15476 ( depreciation for full year) Depreciation in 2016-2021 + $92856 (depreciation for years) Depreciation in 2022 - $0 Because the equipment was sold during year & same was not included in balance as of dec 31, 2002 1 Depreciation in 2015 - $15476 of depreciatim for the yr ushen d isset required ) C $7738

Page. No © Depreciation in 2002 = £15476 - $4438 Depreciation in 2016 - 2031 = $92856 (depreciation for 6years) 15446 X 12 Depreciafion for 2015 - Month following to addition is zeptember , depreciation for 4 months : - 15446 X = $5158:67 Depreciation for 2016-2021 - $92856 ( depreciation for 6 years) Depreciation i 2002 = Month followering to disposal si apoil, dep - oreciation for 9 months = 15446 X Y - 11607 Depreciation in 2016 – 2001 - $92856 (depreciation for syns) Depreciation in 2015$ 2002' = $0 . Because, in 2015 asset used for 133 days means less than one half year: hence no depreciation and in 2012, asset used ebox 68 days means less than 3 yr Hence no deprecitition

2015 ww . Page No 4 2016-2021 a inclusive 0 Depreciation is compouted for the exact | $ 5639 92856 $2883 period of time during which the arset is owned Cube 365 days for base e record depreciation through Mor 9.2022) Depreciation is comported for full years on so $92856 $15476 Jan i balance in the asset account Depreciation is computed for full year on dec $15446 $928564 0 31 balance in the assets account Depreciation for one halto gecoin us than $4438 $92856 $7438 gedoo plan assets acquired or dispod of during the year Depreciation is computed on additions $5158.67 $93856 $11607 Hrom the beginning g she month folloce ing acquisition & on disposals to the beg. of mon tfi following disposal Depreciation is computed for a full $0 $92856 $0 periood on all assets in use for over ene halt year,& nodepreciation is chang fred on assets in use for less than ² year Truse 365 days for base)