Asked by Diana Gasparyan on Jul 21, 2024
Verified
Explain the purpose of and method of depreciation for partial years.
Depreciation
The accounting method of allocating the cost of a tangible or physical asset over its useful life.
Partial Years
Refers to accounting or financial reporting periods that are less than a full year, often due to the company's incorporation date or a change in accounting periods.
- Attain the capability to calculate the depreciation expense by leveraging various methods, including straight-line, double-declining balance, and units-of-production.
Verified Answer
JF
Johnny FontaineJul 25, 2024
Final Answer :
Partial years' depreciation is often required because assets are bought and sold throughout the year.Depreciation for assets owned for less than one year is commonly calculated as the annual depreciation prorated for the number of months the assets are owned during the year.This is done so that the year of purchase or the year of disposal is charged with its share of the asset's depreciation.
Learning Objectives
- Attain the capability to calculate the depreciation expense by leveraging various methods, including straight-line, double-declining balance, and units-of-production.
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