Chong Corp. purchased a machine on July 1, 2023, for $30,000. Chong paid $200 in title fees
Question:
Chong Corp. purchased a machine on July 1, 2023, for $30,000. Chong paid $200 in title fees and a legal fee of $100 related to the machine. In addition, Chong paid $500 in shipping charges for delivery, and $400 to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 10 years, a total expected life of 12 years, a residual value of $6,000, and no salvage value. Chong uses straight-line depreciation.
(a) Calculate the 2023 depreciation expense if Chong prepares financial statements in accordance with IFRS.
(b) Calculate the 2023 depreciation expense if Chong prepares financial statements in accordance with ASPE.
Step by Step Answer:
Original Cost 30000 200 100 500 400 31200 a b Under ASPE deprec...View the full answer
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
