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Question 9 Bridgeport Corp. purchased machinery for $492,000 on May 1, 2017. It is estimated that...

Question 9

Bridgeport Corp. purchased machinery for $492,000 on May 1, 2017. It is estimated that it will have a useful life of 10 years, residual value of $12,000, production of 192,000 units, and 40,000 working hours. The machinery will have a physical life of 15 years and a salvage value of $3,000. During 2018, Bridgeport Corp. used the machinery for 2,350 hours and the machinery produced 25,000 units. Bridgeport prepares financial statements in accordance with IFRS.

From the information given, calculate the depreciation charge for 2018 under each of the following methods, assuming Bridgeport has a December 31 year end.

(a)

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Calculate the depreciation charge for 2018 under straight-line method.

Depreciation charge for 2018 $
Attempts: 1 of 1 used

(b)

Calculate the depreciation charge for 2018 under unit-of-production method. (Round rate per unit to 2 decimal places, e.g. 5.27.)

Depreciation per output unit /output unit
Depreciation charge for 2018 $
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