Answer:
a). Partial-year depreciation for 2021 is $4,675
b). Partial-year depreciation for 2022 is $18,700
Explanation:
The final value of the equipment after 10 years=$4,000
Depreciation=Initial purchase value-residual value after 10 years
where;
Initial purchase value=$191,000
Value after 10 years=residual value=$4,000
Replacing;
Depreciation=(191,000-4,000)=187,000
In 10 years the equipment will have depreciated by $187,000
Average depreciation per year=Depreciation/service life
Average depreciation per year=(187,000/10)=$18,700
Partial-year depreciation for;
2021
Service life is from October-December=3 months service life
Partial-year depreciation=(3/12)×18,700=$4,675
Partial-year depreciation for 2021 is $4,675
2022
Service life is for the whole year=12 months service life
Partial-year depreciation=(12/12)×18,700=$18,700
Partial-year depreciation for 2022 is $18,700
