A company purchases equipment costing $50 000, which it expects to last for 12 years and...
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A company purchases equipment costing $50 000, which it expects to last for 12 years and to have a salvage value of $2000. (2 marks) A. Prepare a schedule of depreciation for the first five years using the straight-line method. Year 1 2 3 4 5 1 2 3 B. For the same equipment, prepare a schedule of depreciation for the first five years using the declining-balance method. Canada Revenue Agency's prescribed rate for depreciation is 30%. (2.5 marks) Year 4 5 Straight-line Depreciation Depreciation Year 1 2 3 4 5 Balance $50 000 Declining Balance Depreciation C. Repeat the same type of calculations as in B above, but this time assume CRA's 50% rule is in effect. (2.5 marks) Balance $50 000.00 Declining Balance with 50% Rule Depreciation Balance $50 000.00 A company purchases equipment costing $50 000, which it expects to last for 12 years and to have a salvage value of $2000. (2 marks) A. Prepare a schedule of depreciation for the first five years using the straight-line method. Year 1 2 3 4 5 1 2 3 B. For the same equipment, prepare a schedule of depreciation for the first five years using the declining-balance method. Canada Revenue Agency's prescribed rate for depreciation is 30%. (2.5 marks) Year 4 5 Straight-line Depreciation Depreciation Year 1 2 3 4 5 Balance $50 000 Declining Balance Depreciation C. Repeat the same type of calculations as in B above, but this time assume CRA's 50% rule is in effect. (2.5 marks) Balance $50 000.00 Declining Balance with 50% Rule Depreciation Balance $50 000.00
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A Schedule of Depreciation using the StraightLine Method Straightline depreciation is calculated by dividing the difference between the cost of the eq... View the full answer
Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
Posted Date:
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