Final answer:
The most common method for computing partial-year depreciation is based on the half-year convention, where a half year's depreciation is computed for the periods of acquisition and disposal, balancing simplicity and reasonableness.
Step-by-step explanation:
In computing partial-year depreciation, the most common method is to compute a half year's depreciation in the period of acquisition and disposal. This approach is known as the half-year convention. With this convention, no matter when the asset is acquired or disposed of during the fiscal year, half of the annual depreciation expense is recorded. This simplifies the calculation and is assumed to reasonably approximate the actual use of the asset over its first and last year.
There are other methods as well, such as computing depreciation to the nearest full month or basing it on the actual number of days the asset is held during the year. However, the half-year rule is a widely accepted standard because it offers a good balance between simplicity and accuracy. Some systems of taxation or accounting may specify alternative methods, so it's important to follow the guidelines applicable to the specific situation.