When computing depreciation for a partial year using straight-line depreciation:
A)compute depreciation for a full year under straight-line depreciation and multiply it by 50%.
B)compute depreciation for a full year under straight-line depreciation and use that amount.
C)the straight-line method automatically adjusts for partial periods,so no adjustments are needed.
D)compute depreciation for a full year under straight-line depreciation and multiply it by the fraction of the year that you held the asset.

Question

Quizplus · Accepted Answer

The best choice is to compute depreciation for a full year under straight-line depreciation and multiply it by the fraction of the year that you held the asset. This is because straight-line depreciation assumes equal depreciation expense over the useful life of the asset, so it is appropriate to use the prorated amount of the depreciation for the partial year based on the fraction of the year that the asset was used.

When Computing Depreciation for a Partial Year Using Straight-Line Depreciation