Chan Ltd, purchased new furniture for its store on 1 May 2013. The furniture is expected...

 

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Chan Ltd, purchased new furniture for its store on 1 May 2013. The furniture is expected to have a 4- year life and with 20,000 residual value. The following expenditures were associated with the purchase: Cost of the furniture $90,000 5,000 Freight charges Sales taxes Installation of furniture Instructions 3,500 1,500 cost = 70.000+ 1500+3 Chan Ltd adopts the cost model as its accounting policy in subsequently measuring its property, plant, and equipment. 1. Straight-line method. 2. 200 percent declining-balance, 3. sum-of-the-year-digit method =76,500 a. ompute depreciation expense for the years 2013 through 2017 under each depreciation method listed below: (assuming the depreciation policy for partial period depreciation is by using rounded to the nearest whole month) Chan Ltd, purchased new furniture for its store on 1 May 2013. The furniture is expected to have a 4- year life and with 20,000 residual value. The following expenditures were associated with the purchase: Cost of the furniture $90,000 5,000 Freight charges Sales taxes Installation of furniture Instructions 3,500 1,500 cost = 70.000+ 1500+3 Chan Ltd adopts the cost model as its accounting policy in subsequently measuring its property, plant, and equipment. 1. Straight-line method. 2. 200 percent declining-balance, 3. sum-of-the-year-digit method =76,500 a. ompute depreciation expense for the years 2013 through 2017 under each depreciation method listed below: (assuming the depreciation policy for partial period depreciation is by using rounded to the nearest whole month)

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Cost of the furniture 90000 Freight Char... View the full answer