Question: *E11.30 (LO 3, 10) (Depreciation Calculations-Four Methods; Partial T Periods) On August 1, 2020, Iroko Corporation purchased a new machine for its assembly process at

 *E11.30 (LO 3, 10) (Depreciation Calculations-Four Methods; Partial T Periods) On

*E11.30 (LO 3, 10) (Depreciation Calculations-Four Methods; Partial T Periods) On August 1, 2020, Iroko Corporation purchased a new machine for its assembly process at a cost of $136,400. The company estimated that the machine would have a trade-in value of $14,200 at the end of its useful life. Its useful life was estimated to be six years and its working hours were estimated to be 18,000 hours. Iroko's year end is December 31. (Round depreciation per unit to three decimal places.) Iroko Corporation prepares its financial statements using IFRS. Instructions Calculate the depreciation expense under each of the following: a. Straight-line method for 2020. Do not round intermediate calculations and round the final answer to the nearest dollar. b. Activity method for 2020, assuming that machine use was 800 hours. Do not round intermediate calculations and round the per-hour charge to three decimal places. c. Double-declining-balance method for 2020 and 2021. Round the constant percentage rate to two decimal places and round the final answer to the nearest dollar. d. Taxation Capital cost allowance method for 2020 and 2021 using a CCA rate of 25%. Round the final answer to the nearest dollar

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!