Annual depreciation charge
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Cortazar Ltd. purchased a used delivery van for $10,000 on June 23, 2015. The van is expected to last for three years and have a residual value of $1,000. The company’s yearend is December 31, and it follows the policy of charging depreciation in partial periods to the nearest whole month of use.
Required: Calculate the annual depreciation charge and ending carrying value of the asset for each of the following fiscal years using the straight-line method:
a. December 31, 2015
b. December 31, 2016
c. December 31, 2017
d. December 31, 2018
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