Question

Exercise 11-15 On March 10, 2019, Flint Company sells equipment that it purchased for $207,360 on August 20, 2012. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $18,144 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 2012, for 2019, and the total charge for the period from 2013 to 2018, 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 O decimal places, e.g. 45,892.) 2013-2018 Inclusive 2012 2019 (1) Depreciation is computed for the exact period of time during which the asset is owned. (Use 365 days for the (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 (6) Depreciation is computed for a full period on all assets in use for over one-half year, and no depreciation is base and record depreciation through March 9, 2019.) the beginning of the month following disposal charged on assets in use for less than one-half year. (Use 365 days for base.)

Answer 1

Depreciation for full year on straight line basis = ($207360 - $18144) / 12 = $15768

Event		2012	2013-2018 Inclusive *	2019
1	For 2012 - 134 days, 2019 - 69 days	$    5,788.80	$ 94,608.00	$    2,980.80
2	For 2012 - 0 as Balance on Jan 1 is 0	$                 -	$ 94,608.00	$ 15,768.00
3	For 2019 - 0 as Balance on Dec 31 is 0	$ 15,768.00	$ 94,608.00	$                 -
4	For 2012 & 2019 is 1/2 depreciation	$    7,884.00	$ 94,608.00	$    7,884.00
5	For 2012 - 4 months, 2019 - 3 months	$    5,256.00	$ 94,608.00	$    3,942.00
6	For 2012 & 2019 = 0 as asset used for less than half year	$                 -	$ 94,608.00	$                 -

*Depreciation = $15768 x 6 = $94608