The following independent scenarios are provided:

Scenario A Yaloo Incorporated purchased machinery on 2 December 20X2. Delivery was guaranteed within 10 days and the machinery arrived on 7 December 20X2. Installation took place between 10 December and 15 December 20X2. Testing of the machinery commenced on 17 December 20X2. During testing an incompatibility was found with the machinery and existing production software. After investigation and a software upgrade, further testing was completed between 4 January 20X3 and 6 January 20X3. Two trial production runs were completed at the end of January 20X3. On 5 February 20X3 the machinery was launched into full time production, producing 20,000 units in February 20X2. The asset is depreciated using the productive-output (PO) method.

Scenario B Leming Corp. is a large automobile manufacturer. Employees are supported by a reputable and long-standing union. Due to labour tensions during February, March, and April 20X5, all employees from Labour Group 201, which represents all staff except for those serving administrative functions, were on strike. During the strike, manufacturing abruptly halted. All property, plant, and equipment in the manufacturing facility are depreciated using accelerated methods.

Scenario C Pito Corp. acquired new manufacturing equipment in May 20X6. After testing it, Pito used only the new manufacturing equipment in June and July 20X6 and the previously owned equipment was not used. The intent was to compare production output rates of the new equipment to those of the old equipment. Pito depreciates manufacturing equipment using the service-hours (SO) method.

Scenario D On 12 March 20X3 management of Leen Co. decided that it would purchase a new building. An existing building would be sold. On 9 April 20X3 they determined that the existing building would be advertised for sale. On this date all criteria for reclassifying the asset as held for sale were met. On 21 October 20X3 the building was sold. Leen depreciates buildings by the straight-line method.

Required:

For each independent scenario discuss whether it is appropriate to record depreciation or not. If deprecation should be recorded, state for which period.