When using straight-line depreciation to compute depreciation for a partial year:
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 the straight-line method assumes an equal amount of depreciation each year, so the amount of depreciation for a partial year can be calculated by multiplying the full year amount by the fraction of the year you held the asset.

When Using Straight-Line Depreciation to Compute Depreciation for a Partial