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On March 10, 2023, Pearl Limited sold equipment that it bought for $192,000 on August 20, 2016. It was originally estimated that the equipment would have a useful life of 12 years and a residual value of $16,800 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 partic

On March 10, 2023, Pearl Limited sold equipment that it bought for $192,000 on August 20, 2016. It was originally estimated that the equipment would have a useful life of 12 years and a residual value of $16,800 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 partic

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, 2023, Pearl Limited sold equipment that it bought for $192,000 on August 20, 2016. It was originally estimated that the equipment would have a useful life of 12 years and a residual value of $16,800 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 2016 and for 2023, and the total charge for the period from 2017 to 2022, 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 65 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 the beginning of the month following the disposal. disposals to 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 Ces days for your base. 2016 2017-2022 15005.48 eTextbook and Media 2023 2712.33 14600 7300 Total Sudamals Anduar до
Transcribed Image Text:On March 10, 2023, Pearl Limited sold equipment that it bought for $192,000 on August 20, 2016. It was originally estimated that the equipment would have a useful life of 12 years and a residual value of $16,800 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 2016 and for 2023, and the total charge for the period from 2017 to 2022, 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 65 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 the beginning of the month following the disposal. disposals to 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 Ces days for your base. 2016 2017-2022 15005.48 eTextbook and Media 2023 2712.33 14600 7300 Total Sudamals Anduar до
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