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On March 10, 2027, Swifty Company sells equipment that it purchased for $197,760 on August 20, 2020. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $17,304 at the end of that time, and depreciation has been computed on that basis. The company uses the straight-line method of depreciation. (a) Compute the depreciation charge on this equipment for 2020, for 2027, and the total charge for the period from 2021 to 2026, inclusive, under each of the six following assumptions with respect to partial periods. (Round depreciation per day to 2 decimal places, e.g. 15.64 and final answers to O decimal places, e.g. 45,892.) 1. Depreciation is computed for the exact period of time $ during which the asset is owned. (Use 365 days for base and record depreciation through March 9,2027.) 2020 2021-2026 Inclusive $ $ 2. Depreciation is computed $ $ $ for the full year on the January 1 balance in the asset account. 3. Depreciation is computed $ $ for the full year on the December 31 balance in the asset account. 4. Depreciation for one-half $ $ $ year is charged on plant assets acquired or disposed of during the year. 5. Depreciation is computed $ $ $ on additions from the beginning of the month 6. 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 one-half year, and no depreciation is charged on assets in use for less than one-half year. (Use 365 days for base.) $ $ 2027

On March 10, 2027, Swifty Company sells equipment that it purchased for $197,760 on August 20, 2020. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $17,304 at the end of that time, and depreciation has been computed on that basis. The company uses the straight-line method of depreciation. (a) Compute the depreciation charge on this equipment for 2020, for 2027, and the total charge for the period from 2021 to 2026, inclusive, under each of the six following assumptions with respect to partial periods. (Round depreciation per day to 2 decimal places, e.g. 15.64 and final answers to O decimal places, e.g. 45,892.) 1. Depreciation is computed for the exact period of time $ during which the asset is owned. (Use 365 days for base and record depreciation through March 9,2027.) 2020 2021-2026 Inclusive $ $ 2. Depreciation is computed $ $ $ for the full year on the January 1 balance in the asset account. 3. Depreciation is computed $ $ for the full year on the December 31 balance in the asset account. 4. Depreciation for one-half $ $ $ year is charged on plant assets acquired or disposed of during the year. 5. Depreciation is computed $ $ $ on additions from the beginning of the month 6. 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 one-half year, and no depreciation is charged on assets in use for less than one-half year. (Use 365 days for base.) $ $ 2027

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, 2027, Swifty Company sells equipment that it purchased for $197,760 on August 20, 2020. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $17,304 at the end of that time, and depreciation has been computed on that basis. The company uses the straight-line method of depreciation. (a) Compute the depreciation charge on this equipment for 2020, for 2027, and the total charge for the period from 2021 to 2026, inclusive, under each of the six following assumptions with respect to partial periods. (Round depreciation per day to 2 decimal places, e.g. 15.64 and final answers to O decimal places, e.g. 45,892.) 1. 2. 3. 4. 5. 6. Depreciation is computed for the exact period of time during which the asset is owned. (Use 365 days for base and record depreciation through March 9, 2027.) Depreciation is computed for the full year on the January 1 balance in the asset account. Depreciation is computed for the full year on the December 31 balance in the asset account. Depreciation for one-half 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 one-half year, and no depreciation is charged on assets in use for less than one-half year. (Use 365 days for base.) $ $ 2020 $ $ 2021-2026 Inclusive 2027
Transcribed Image Text:On March 10, 2027, Swifty Company sells equipment that it purchased for $197,760 on August 20, 2020. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $17,304 at the end of that time, and depreciation has been computed on that basis. The company uses the straight-line method of depreciation. (a) Compute the depreciation charge on this equipment for 2020, for 2027, and the total charge for the period from 2021 to 2026, inclusive, under each of the six following assumptions with respect to partial periods. (Round depreciation per day to 2 decimal places, e.g. 15.64 and final answers to O decimal places, e.g. 45,892.) 1. 2. 3. 4. 5. 6. Depreciation is computed for the exact period of time during which the asset is owned. (Use 365 days for base and record depreciation through March 9, 2027.) Depreciation is computed for the full year on the January 1 balance in the asset account. Depreciation is computed for the full year on the December 31 balance in the asset account. Depreciation for one-half 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 one-half year, and no depreciation is charged on assets in use for less than one-half year. (Use 365 days for base.) $ $ 2020 $ $ 2021-2026 Inclusive 2027
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