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On March 10, 2020, Waterway Limited sold equipment that it bought for $266,880 on August 21, 2013. It was originally estimated that the equipment would have a useful life of 12 years and a residual value of $21.600 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 IFRS. (a) 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 O 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) 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. Depreciation for a half year is charged on plant assets that are acquired or disposed of during the year. 4. 5. Depreciation is calculated on additions from the beginning of the month following their acquisition and on disposals to the beginning of the month following the disposal. Depreciation is calculated for a full period on all assets in use for over half a year, and no depreciation is charged on assets in use for less than half a year. (Use 365 days for your base) 6. sumptions 2013 2014-2019 2020 Tot 7.394 122.640 3,922 2. 122,640 20,440 20.440 122.640 4. 10.220 122.640 10,220 5. 6,813 122,640 5,110 6. 122,640 1. 3.

On March 10, 2020, Waterway Limited sold equipment that it bought for $266,880 on August 21, 2013. It was originally estimated that the equipment would have a useful life of 12 years and a residual value of $21.600 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 IFRS. (a) 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 O 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) 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. Depreciation for a half year is charged on plant assets that are acquired or disposed of during the year. 4. 5. Depreciation is calculated on additions from the beginning of the month following their acquisition and on disposals to the beginning of the month following the disposal. Depreciation is calculated for a full period on all assets in use for over half a year, and no depreciation is charged on assets in use for less than half a year. (Use 365 days for your base) 6. sumptions 2013 2014-2019 2020 Tot 7.394 122.640 3,922 2. 122,640 20,440 20.440 122.640 4. 10.220 122.640 10,220 5. 6,813 122,640 5,110 6. 122,640 1. 3.

FINANCIAL ACCOUNTING
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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On March 10, 2020, Waterway Limited sold equipment that it bought for $266,880 on August 21, 2013. It was originally estimated that the equipment would have a useful life of 12 years and a residual value of $21.600 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 IFRS. (a) 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 O 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.) 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. 5. Depreciation is calculated on additions from the beginning of the month following their acquisition and on disposals to the beginning of the month following the disposal. Depreciation is calculated for a full period on all assets in use for over half a year, and no depreciation is charged on assets in use for less than half a year, (Use 365 days for your base.) 6. sumptions 2013 2014-2019 2020 Tot 1. 7.394 122.640 3,922 2. 122,640 20440 3. 20.440 122,640 10.220 122,640 10,220 5. 6,813 122,640 5,110 6. 122,640 4.
Transcribed Image Text:On March 10, 2020, Waterway Limited sold equipment that it bought for $266,880 on August 21, 2013. It was originally estimated that the equipment would have a useful life of 12 years and a residual value of $21.600 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 IFRS. (a) 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 O 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.) 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. 5. Depreciation is calculated on additions from the beginning of the month following their acquisition and on disposals to the beginning of the month following the disposal. Depreciation is calculated for a full period on all assets in use for over half a year, and no depreciation is charged on assets in use for less than half a year, (Use 365 days for your base.) 6. sumptions 2013 2014-2019 2020 Tot 1. 7.394 122.640 3,922 2. 122,640 20440 3. 20.440 122,640 10.220 122,640 10,220 5. 6,813 122,640 5,110 6. 122,640 4.
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