On March 10, 2020, Pearl Limited sold equipment that it bought for $134,640 on August 21, 2013. It was originally estimated that theequipment would have a useful life of 12 years and a residual value of $12,000 at the end of that time, and depreciation has beencalculated on that basis. The company uses the straight-line method of depreciation and prepares its financial statements under IFRS.Your answer is partially correct.Calculate the depreciation charge on this equipment for 2013 and for 2020, and the total charge for the period from 2014 to2019, inclusive, under each of the following six assumptions for partial periods: (Round answers to O decimal places, e.g. 5,275.)1.Depreciation is calculated for the exact period of time during which the asset is owned. (Use 365 days for your base.)2.Depreciation is calculated for the full year on the January 1 balance in the asset account.3.Depreciation is calculated for the full year on the December 31 balance in the asset account.4.Depreciation for a half year is charged on plant assets that are acquired or disposed of during the year.Depreciation is calculated on additions from the beginning of the month following their acquisition and on disposals tothe beginning of the month following the disposal.5.6.Depreciation is calculated for a full period on all assets in use for over half a year, and no depreciation is charged onassets in use for less than half a year. (Use 365 days for your base.) isumptions20132014-20192020To1.2$6132061320102203.10220613204.51106132051105.34076132025556.61320%24%24%242.

Name: On March 10, 2020, Pearl Limited sold equipment that it bought for $1
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Description: On March 10, 2020, Pearl Limited sold equipment that it bought for $134,640 on August 21, 2013. It was originally estimated that theequipment would have a useful life of 12 years and a residual value of $12,000 at the end of that time, and depreciat

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On March 10, 2020, Pearl Limited sold equipment that it bought for $134,640 on August 21, 2013. It was originally estimated that t equipment would have a useful life of 12 years and a residual value of $12,000 at the end of that time, and depreciation has been calculated on that basis. The company uses the straight-line method of depreciation and prepares its financial statements under IFR Your answer is partially correct. Calculate the depreciation charge on this equipment for 2013 and for 2020, and the total charge for the period from 2014 to 2019, inclusive, under each of the following six assumptions for partial periods: (Round answers to 0 decimal places, eg. 5,275.) 1. Depreciation is calculated for the exact period of time during which the asset is owned. (Use 365 days for your base.) Depreciation is calculated for the full year on the January 1 balance in the asset account. 2.

On March 10, 2020, Pearl Limited sold equipment that it bought for $134,640 on August 21, 2013. It was originally estimated that t equipment would have a useful life of 12 years and a residual value of $12,000 at the end of that time, and depreciation has been calculated on that basis. The company uses the straight-line method of depreciation and prepares its financial statements under IFR Your answer is partially correct. Calculate the depreciation charge on this equipment for 2013 and for 2020, and the total charge for the period from 2014 to 2019, inclusive, under each of the following six assumptions for partial periods: (Round answers to 0 decimal places, eg. 5,275.) 1. Depreciation is calculated for the exact period of time during which the asset is owned. (Use 365 days for your base.) Depreciation is calculated for the full year on the January 1 balance in the asset account. 2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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