On January 1, 2005, Fleming Company purchased equipment at a cost of CHF650,000.The equipment was estimated to have a salvage value of CHF55,000 and it is being depreciated over seven years under the sum-of-the-year's-digits method.What should be the charge for the depreciation of this equipment for the year ended December 31, 2011?

Question

Quizplus · Accepted Answer

By 2011, the equipment is fully depreciated as it was purchased in 2005 and has a useful life of 7 years. Therefore, the depreciation charge for 2011 is CHF0. However, since the options provided do not include CHF0, the closest option is CHF21,250, which might be a miscalculation or misinterpretation of the problem.

On January 1, 2005, Fleming Company Purchased Equipment at a Cost