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Hi.
there are 2 rules of depreciation:
1. deduct entire year dep in the first year and none on year of disposal
2. compute dep on a prorata method.My question is that if a question DOES NOT SPECIFY any of these, which is to be assumed?
thanks
Most likely is that the question will specify (so if it seems not, then do check again in case you missed it 🙂 )
If it does not specify, then assume always that it is pro-rata.
cool…. i was doing a problem in kaplan text where it was not specified. and u are right.. they had done pro rata.
THANK U!!!!
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