On August 1, 2014, Iroko Corporation purchased a new machine for its assembly process. The cost of this machine was $136,400. The company estimated that the machine will have a trade-in value of $14,200 at the end of its useful life. Its useful life was estimated to be six years and its working hours were estimated to be 18,000 hours. Iroko's year end is December 31. (Round depreciation per unit to three decimal places.)
Calculate the depreciation expense under each of the following:
(a) Straight-line method for 2014
(b) Activity method for 2014, assuming that machine use was 800 hours
(c) Double-declining-balance method for 2014 and 2015
(d) Capital cost allowance method for 2014 and 2015 using a CCA rate of 25%

  • CreatedSeptember 18, 2015
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