Chapter 11, Problem 11.3P

Depreciation methods; partial periods Chapters 10 and 11

• LO11–2

[This problem is a continuation of Problem 10–3 in Chapter 10 focusing on depreciation.]

Required:

For each asset classification, prepare a schedule showing depreciation for the year ended December 31, 2018, using the following depreciation methods and useful lives:

Land improvements—Straight line; 15 years

Building—150% declining balance; 20 years

Machinery and equipment—Straight line; 10 years

Automobiles—150% declining balance; 3 years

Depreciation is computed to the nearest month and no residual values are used.