Question $2-$

For the following independent examples, determine:

Type of asset and quantify amount $($where applicable$).$

Depreciation and impairment treatment under IFRS. Quantify where applicable.$$

Any difference in treatment under ASPE

Assume straight$-$line depreciation is used. Show all supporting calculations.

Case A: On January $1,2021$ Expansion Inc. $($EI$)$ purchased the net assets of Research Inc.$($RI$)$ for $$1\mathrm{.}8$ million cash. The estimated fair value of RI$$s assets was $$2\mathrm{.}3$ million and the fair value of the liabilities assumed was $$0\mathrm{.}8$ million. These assets and liabilities form a cash generating unit $($CGU$).$ On December $31,2021$ the CGU had a fair value of $$1\mathrm{.}7$ million.

Case B: Survey Inc. $($SI$)$ purchased a customer list from Marketing Inc. on July. $1,2021$ for $$800,000.$ SI is going to use this customer list to complete consumer preference surveys over the next three years. The customer list is expected to have a residual value of $$50,000$ at the end of the three years.

Case C: Orchard Growers Inc. $($OGI$)$ owns and operates orchards across Canada. On Jan. $1,2021,$ OGI purchased additional apple trees to maintain their orchard's production capacity. Each tree cost on average $$1,000$ and has an average lifespan of five years.

Case D: On January $1,2021,$ as part of their environmental initiative Delivery Inc.$($DI$)$ purchased $50$ electric vehicles. Each vehicle costs $$50,000$ and have a useful life of $10$ years. The battery in the car needs to be replaced every five years. A replacement battery costs $$5,000$ per car.