On March 10, 2027, Swifty Company sells equipment that it purchased for $197,760 on August 20, 2020. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $17,304 at the end of that time, and depreciation has been computed on that basis. The company uses the straight-line method of depreciation. (a) Compute the depreciation charge on this equipment for 2020, for 2027, and the total charge for the period from 2021 to 2026, 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.) 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 9,2027.) 2020 2021-2026 Inclusive $ $ 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 6. 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.) $ $ 2027
On March 10, 2027, Swifty Company sells equipment that it purchased for $197,760 on August 20, 2020. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $17,304 at the end of that time, and depreciation has been computed on that basis. The company uses the straight-line method of depreciation. (a) Compute the depreciation charge on this equipment for 2020, for 2027, and the total charge for the period from 2021 to 2026, 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.) 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 9,2027.) 2020 2021-2026 Inclusive $ $ 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 6. 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.) $ $ 2027
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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Transcribed Image Text:On March 10, 2027, Swifty Company sells equipment that it purchased for $197,760 on August 20, 2020. It was originally estimated
that the equipment would have a life of 12 years and a salvage value of $17,304 at the end of that time, and depreciation has been
computed on that basis. The company uses the straight-line method of depreciation.
(a) Compute the depreciation charge on this equipment for 2020, for 2027, and the total charge for the period from 2021 to 2026,
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.)
1.
2.
3.
4.
5.
6.
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, 2027.)
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.)
$
$
2020
$
$
2021-2026 Inclusive
2027
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