Question: On March 1 0 , 2 0 2 7 , Oriole Company sells equipment that it purchased for ( $ 2 3 0
On March Oriole Company sells equipment that it purchased for $ on August It was originally estimated that the equipment would have a life of years and a salvage value of $ at the end of that time, and depreciation has been computed on that basis. The company uses the straightline method of depreciation.
a Compute the depreciation charge on this equipment for for and the total charge for the period from to inclusive, under each of the six following assumptions with respect to partial periods. Round depreciation per day to decimal places, eg and final answers to decimal places, egDepreciation is computed for the exact period of time during which the asset is owned. Use days for base and record depreciation through March Depreciation is computed for the full year on the January balance in the asset account.Depreciation is computed for the full year on the December balance in the asset account.
Depreciation is
computed for the full year on the
December
balance in the
asset account.
Depreciation for onehalf 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 onehalf year, and no depreciation is charged on assets in use for less than onehalf year.
Use days for base.
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