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22. Lost World Company inally estimated that the E11.15 (LO 1,2) (Depreciation for Fractional Periods) On...


22. Lost World Company inally estimated that the E11.15 (LO 1,2) (Depreciation for Fractional Periods) On March 10, 2022, Los
22. Lost World Company inally estimated that the E11.15 (LO 1,2) (Depreciation for Fractional Periods) On March 10, 2022, Lost World sells equipment that it purchased for $192,000 on August 20, 2015. It was originally estimated equipment would have a life of 12 years and a salvage value of $16,800 at the end of that time preciation has been computed on that basis. The company uses the straight-line method of depreciation Instructions a. 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. 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 accoun 4. Depreciation for one-half year is charged on plant assets acquired or disposed of our 5. Depreciation is computed on additions from the beginning of the month following a 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 preciation is charged on assets in use for less than one-half year. (Use 365 days for b. Briefly evaluate the methods above, considering them from the point of view of theory as well as simplicity of application. F11 16 following acquisition er one-half year, and no de e 365 days for base.) of view of basic accounting
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Answer the company sello equipment that int purchased $ 192,000 on August 20, 2015 The equipment would have a clef 12 year Sall+30 +31 +31 133 day Deprecati 320152 14600 X133 365 > 1941800 365 2 5320 Depreciation from till 2021 2012 6x14600 =87600 Nu© Depreciation is calculated Depreciation for 2015 shall be to Since assets has been purchaed in the middle 2015 Depreciolini2016 to 20:21: 6X16600 387600 Since the assets has been sold omarch changed on plat @ Depreciakin one half you Deprecialiosio6 Depreciation is computed on addition from the beginnig - ④ Depreciation charge for 2015 Number of days = 30 +31 +30 +31 =12Since e asset Less than purchased on augud and ence half of the year 2015 Deprecicleas from 2016 kl 20 21 shall be = 6X14600

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