Question

	On March 10, 2019, Sandhill Company sells equipment that it purchased for $232,320 on August 20, 2012. It was originally estimated that the equipment would have a life of 12 years and a salvage value of $20,328 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 2012, for 2019, and the total charge for the period from 2013 to 2018, 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 0 decimal places, e.g. 45,892.)
			2012	2013-2018 Inclusive	2019
1	Depreciation is computed for the exact period of time during which the asset is owned. (Use 365 days for the base and record depreciation through March 9, 2019.)
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 following acquisition and on disposals to the beginning of the month following disposal.
6	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.)

Answer 1

1. Depreciation is computed for the exact period of time during which the asset is owned.	$6437	$105996	$3291
2. Depreciation is computed for the full year on the january 1 balance in the asset account.	0	105996	17666
3. Depreciation is computed for the full year on the December 31 balance in the asset account.	17666	105996	0
4. Depreciation for one-half year is charged on plant assets acquired or disposed of during the year.	8833	105996	8833
5. Depreciation is computed on additions from the beginning of the month following acquisition and on disposals to the beginning of the month following disposal.	5889	105996	4417
6. 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.	0	105996	0
	2012	2013-2018 inclusive	2019

	2012	2013-2018 inclusive	2019	Total
1. $232320 - $20328 = $211992
$211992 / 12 = $17666
per yr. ($48.40 per day) 133 / 365 of $17666	$6437
2013 - 2018 include (6 * $17666)		105996
68 / 365 of $17666			3291	115724
2.	0	105996	17666	123662
3.	17666	105996	0	123662
4.	8833	105996	8833	123662
5. 4 / 12 of $17666	5889
2013 - 2018 includes		105996
3 / 12 of $17666			4417	116302
6.	0	105996	0	105996
* 11 + 30 + 31 + 30 + 31 = 133