Andeo Corporation purchased a truck at the beginning of 2023 for $48,000. The truck is estimated to
Question:
Andeo Corporation purchased a truck at the beginning of 2023 for $48,000. The truck is estimated to have a residual value of $3,000 and a useful life of 275,000 km. It was driven for 52,000 km in 2023 and 65,000 km in 2024.
(a) Calculate depreciation expense for 2023 and 2024 using the units of production method. Round the per-kilometre charge to four decimal places and the final answer to the nearest dollar.
(b) For tax purposes, the asset is considered eligible equipment for the Accelerated Investment Incentive. The asset’s CCA rate is 30%. Calculate the CCA for 2023 and 2024. Round the final answer to the nearest dollar.
Step by Step Answer:
Intermediate Accounting Volume 1
ISBN: 9781119740469
13th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy