**Depreciation Exercise for Bonita Company Equipment**On March 10, 2022, Bonita Company sells equipment that it had purchased for $209,280 on August 20, 2015. It was initially estimated that the equipment would have a life of 12 years and a salvage value of $18,312 at the end of that time. Depreciation is computed on that basis using the straight-line method.**Objective:**Compute the depreciation charge on this equipment for 2015, for 2022, and the total charge for the period from 2016 to 2021. Consider each of the following six assumptions regarding partial periods.**Instructions:**Round depreciation per day to 2 decimal places (e.g., 15.64) and final answers to 0 decimal places (e.g., 45,892).**Assumptions:**1. **Exact Period Depreciation:** - Compute for the exact period of ownership. - Use 365 days for the base and record depreciation through March 9, 2022. | Year | Depreciation ($) | |-----------------------|------------------| | **2015** | | | **2016-2021 Inclusive** | | | **2022** | |2. **Full Year Depreciation - January 1:** - Compute for the full year on the January 1 balance in the asset account. | Year | Depreciation ($) | |-----------------------|------------------| | **2015** | | | **2016-2021 Inclusive** | | | **2022** | |3. **Full Year Depreciation - December 31:** - Compute for the full year on the December 31 balance in the asset account. | Year | Depreciation ($) | |-----------------------|------------------| | **2015** | | | **2016-2021 Inclusive** | | | **2022** | |4. **Half-Year Convention:** - Depreciate half a year for assets acquired or disposed of during the year. | Year | Depreciation ($) | |-----------------------|------------------| | **2015** | ### Depreciation Calculations1. **Depreciation is computed for the full year on the January 1 balance in the asset account.** - Input Box: $ ___2. **Depreciation is computed for the full year on the December 31 balance in the asset account.** - Input Box: $ ___3. **Depreciation for one-half year is charged on plant assets acquired or disposed of during the year.** - Input Box: $ ___4. **Depreciation is computed on additions from the beginning of the month following acquisition and on disposals to the beginning of the month following disposal.** - Input Box: $ ___5. **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.)** - Input Box: $ ___### ExplanationEach section provides a method for calculating depreciation over various time frames and circumstances such as acquisitions or disposals of plant assets. The blank boxes next to each statement are intended for users to input their respective depreciation values in dollars.

Answered: ê väluê öf method of c 5, for 2022

Business

Accounting

ê väluê öf method of c 5, for 2022

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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