Question: On january 2 2016 Lapar Corpo ration purchased a machine for 50 000

On january 2,2016, Lapar Corpo-ration purchased a machine for $50,000. Lapar paid shipping expenses of $500, as well as installation costs of $1.200. The company estimated that the machine would have a useful life of 10 yers and a residual value of $3,000.On january 1, 2017 Lapar made addition costing $3,600 to the machine in order to comply with polltion-control ordinances. These additions neither proolonged the life of the machine nor increased the residual value.
1. If lapar records depreciation expense under the straight-line method, how much is the depriciation expense for 2017?
2. Assume Lapar determines the machine has three significant componests as shown below.
If Lapar uses IFRS, what is the amount of depreciation expense that would be recorded?

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  • CreatedOctober 05, 2015
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