When Depreciation Is Computed for Partial Periods Under a Decreasing

question 140

Multiple Choice

When depreciation is computed for partial periods under a decreasing charge depreciation method, it is necessary to

• A) charge a full year's depreciation to the year of acquisition.
• B) determine depreciation expense for the full year and then prorate the expense between the two periods involved.
• C) use the straight-line method for the year in which the asset is sold or otherwise disposed of.
• D) use a salvage value equal to the first year's partial depreciation charge.

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