Question

Flintwood Inc. purchased a machine on July 1, 2019, for $30,890. Indigo paid $230 in title...

Flintwood Inc. purchased a machine on July 1, 2019, for $30,890. Indigo paid $230 in title fees and a legal fee of $225 related to the machine. In addition, Indigo paid $530 in shipping charges for delivery, and $525 to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 10 years, a total expected life of 12 years, a residual value of $5,600, and no salvage value. Indigo uses straight-line depreciation.

Calculate the 2019 depreciation expense if Indigo prepares financial statements in accordance with IFRS.

Calculate the 2019 depreciation expense if Indigo prepares financial statements in accordance with ASPE.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Marigold Corp. purchased machinery for $576,000 on May 1, 2017. It is estimated that it will...
Marigold Corp. purchased machinery for $576,000 on May 1, 2017. It is estimated that it will have a useful life of 10 years, residual value of $16,000, production of 560,000 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, Marigold Corp. used the machinery for 2,200 hours and the machinery produced 26,500 units. Marigold prepares financial statements in accordance with IFRS. From the information given, calculate...
Stacey Ltd purchased a new machine on 1 September 2019 at a cost of $251,200 (excluding...
Stacey Ltd purchased a new machine on 1 September 2019 at a cost of $251,200 (excluding GST).    The entity estimated that the machine has a residual value of $28,600 (excluding GST).    The machine is expected to be used for 42,000 working hours during its 10 year life Assume a 31 December year-end.       Required      (a) Calculate the depreciation expense using the straight-line method for 2019 and 2020. (b) Calculate the depreciation expense using the diminishing-balance method and a depreciation rate...
Stacey Ltd purchased a new machine on 1 September 2019 at a cost of $243,000 (excluding...
Stacey Ltd purchased a new machine on 1 September 2019 at a cost of $243,000 (excluding GST).    The entity estimated that the machine has a residual value of $28,800 (excluding GST). The machine is expected to be used for 42,000 working hours during its 10 year life Assume a 31 December year-end.    Required    (a) Calculate the depreciation expense using the straight-line method for 2019 and 2020. (b) Calculate the depreciation expense using the diminishing-balance method and a...
Concord Corp. purchased machinery for $465,000 on May 1, 2017. It is estimated that it will...
Concord Corp. purchased machinery for $465,000 on May 1, 2017. It is estimated that it will have a useful life of 10 years, residual value of $15,000, production of 360,000 units, and 25,000 working hours. The machinery will have a physical life of 15 years and a salvage value of $3,000. During 2018, Concord Corp. used the machinery for 2,550 hours and the machinery produced 25,500 units. Concord prepares financial statements in accordance with IFRS. From the information given, calculate...
Marigold Corp. purchased machinery for $576,000 on May 1, 2017. It is estimated that it will...
Marigold Corp. purchased machinery for $576,000 on May 1, 2017. It is estimated that it will have a useful life of 10 years, residual value of $16,000, production of 560,000 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, Marigold Corp. used the machinery for 2,200 hours and the machinery produced 26,500 units. Marigold prepares financial statements in accordance with IFRS. From the information given, calculate...
On April 1, 2020, Flounder Corp. was awarded $450,000 cash as compensation for the forced sale...
On April 1, 2020, Flounder Corp. was awarded $450,000 cash as compensation for the forced sale of its land and building, which were directly in the path of a new highway. The land and building cost $60,000 and $280,000, respectively, when they were acquired. At April 1, 2020, the accumulated depreciation for the building amounted to $185,000. On August 1, 2020, Flounder purchased a piece of replacement property for cash. The new land cost $190,000 and the new building cost...
Part 2: Utilizing Assets Sam’s Construction Inc. purchased an equipment truck on October 1, 2019. The...
Part 2: Utilizing Assets Sam’s Construction Inc. purchased an equipment truck on October 1, 2019. The truck cost $31,000 plus $3,700 in taxes and $350 in destination/shipping charges. Sam’s Construction Inc. paid $10,000 in cash and signed a note for the remainder. The company’s accounting manager estimates the truck to have a five-year useful life and residual value of $6,850. Sam’s Construction Inc. uses the straight-line depreciation method. Which accounts will be affected by the accounting entry on October 1,...
Hane Company purchased a machine for $50,000 on May 1 of Year 1. Also associated with...
Hane Company purchased a machine for $50,000 on May 1 of Year 1. Also associated with this purchase on May 1 of Year 1 were $3,800 in sales taxes and $4,000 in machine preparation, shipping, and installation costs. Hane paid a total of $10,000 cash and signed a note payable agreeing to pay the remainder in the future. The machine has an estimated useful life of 6 years and an estimated salvage value of $5,000. Hane Company uses the straight-line...
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...
Reed Ltd is a manufacturer of surfboards which commenced operations on 1 July 2019. The Statement...
Reed Ltd is a manufacturer of surfboards which commenced operations on 1 July 2019. The Statement of Comprehensive Income and the Statement of Financial Position were compiled on 30 June 2020. The following information was available: Statement of Comprehensive Income for the year ended 30 June 2020   $                      $ Sales 430,000 Less Cost of Goods Sold 130,000 Administrative expense     70,000 Warranty expense 60,000 Depreciation- machine     40,000 Insurance expense    20,000    320,000 Profit before income tax 110,000 Following information was extracted...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT