West Coast Tours runs boat tours along the West Coast of British Columbia. On March 5, 2023,
Question:
West Coast Tours runs boat tours along the West Coast of British Columbia. On March 5, 2023, it purchased, with cash, a cruising boat for $828,000, having a useful life of 10 years or 13,250 hours, with a residual value of $192,000. The company’s year-end is December 31.
RequiredCalculate depreciation expense for the fiscal years 2023, 2024, and 2025 by completing a schedule with the following headings (round calculations to the nearest whole dollar):
Analysis Component:
If you could ignore the matching principle, how could you record the purchase of the boat? What impact would this have on the financial statements in the short and long term?
Step by Step Answer:
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris