Andeo Corporation purchased a truck at the beginning of 2023 for $48,000. The truck is estimated to

Question:

Andeo Corporation purchased a truck at the beginning of 2023 for $48,000. The truck is estimated to have a residual value of $3,000 and a useful life of 275,000 km. It was driven for 52,000 km in 2023 and 65,000 km in 2024. 

(a) Calculate depreciation expense for 2023 and 2024 using the units of production method. Round the per-kilometre charge to four decimal places and the final answer to the nearest dollar. 

(b) For tax purposes, the asset is considered eligible equipment for the Accelerated Investment Incentive. The asset’s CCA rate is 30%. Calculate the CCA for 2023 and 2024. Round the final answer to the nearest dollar.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate Accounting Volume 1

ISBN: 9781119740469

13th Canadian Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

Question Posted: