Repeat the requirements in E11- 13 assuming that Kurtis Koal Company, Inc. is an IFRS reporter and

Question:

Repeat the requirements in E11- 13 assuming that Kurtis Koal Company, Inc. is an IFRS reporter and the mining machine has two components: casing and engine. $ 800,000 is allocated to the engine, which has a six- year useful life and $ 60,000 . $ 100,000 is allocated to the casing, which has a 10- year useful life and no . The straight- line method is used.
In Exercise
Year Tons of Coal
1 …………………. 700,000
2 …………………. 1,400,000
3 …………………. 1,600,000
4 …………………. 1,000,000
5 …………………. 750,000
6 …………………. 550,000
Required
a. Prepare the depreciation schedule for the machine.
b. Kurtis Koal sells the mining machine for $ 450,000 at the end of year 3. What is the gain or loss on the sale? Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...