Question: On June 30, 2018, Rosetta Granite purchased a machine for $120,000. The estimated useful life of the machine is eight years and no residual value

On June 30, 2018, Rosetta Granite purchased a machine for $120,000. The estimated useful life of the machine is eight years and no residual value is anticipated. An important component of the machine is a specialized highspeed drill that will need to be replaced in four years. The $20,000 cost of the drill is included in the $120,000 cost of the machine. Rosetta uses the straight-line depreciation method for all machinery.

Required:

1. Calculate depreciation for 2018 and 2019 applying the typical U.S. GAAP treatment.

2. Repeat requirement 1 applying IFRS.

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Requirement 1 US GAAP 2018 120000 8 15000 612 7500 2019 120000 8 15000 Requirement 2 IFRS 2018 M... View full answer

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