Your answer is partially correct. Try again. On March 10, 2016, Lost World Compa

Question

Your answer is partially correct. Try again. On March 10, 2016, Lost World Company sells equipment that it purchased for $282,240 on August 20, 2009. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $24,696 at the end of that time, and depreciation has been computed on that basis. The company uses the straight-line method of depreciation. Compute the depreciation charge on this equipment for 2009, for 2016, and the total charge for the period from 2010 to 2015, inclusive, under each of the six following assumptions with respect to partial periods. (Round answers to O decimal places, e.g. 45,892. Do not leave any answer field blank. Enter 0 for amounts.)

Explanation / Answer

According to me you have got all answers correct except for 1st assumption Year 2016 depreciation these is how calculation is to be done for depreciation under these methods.

Depreciation per year, per month and per day = ($282240-$24696)/12 = $21462 per year = $21462/12 months = $1788.5 per month = $21462/365 days = $58.8 per day

Now, we calculate no of days or month depreciation is to be charged for the required periods

Now based on above data just multiplying it with rate per day, per month or per year we can get the depreciation charged as follows:

Assumptions 2009 2010-2015 inclusive 2016 1 133 days 2190 days (365 * 6 years) 69 days 2 0 days 2190 days 365 days 3 365 days 2190 days 0 days 4 6 months 72 months (12 months * 6 years) 6 months 5 4 months 72 months 3 months 6 0 years 6 years 0 years

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