On June 30, 2011, Rosetta Granite purchased a machine for $120,000. The estimated useful life of the
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On June 30, 2011, Rosetta Granite purchased a machine for $120,000. The estimated useful life of the machine is eight years and no residual value is anticipated. An important component of the machine is a specialized high-speed drill that will need to be replaced in four years. The $20,000 cost of the drill is included in the $120,000 cost of the machine. Rosetta uses the straight-line depreciation method for all machinery.
Required:
1. Calculate depreciation for 2011 and 2012 applying the typical U.S. GAAP treatment.
2. Repeat requirement 1 applying IFRS.
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...
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Requirement 1 US GAAP 2011 120000 8 15000 x 612 7500 ...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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