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2. Vincent Limited paid $100,000 to purchase equipment at the beginning of 2020. Vincent Limited estimated the useful life of the equipment to be 5

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2. Vincent Limited paid $100,000 to purchase equipment at the beginning of 2020. Vincent Limited estimated the useful life of the equipment to be 5 years or 200,000 units. The quipment will be considered fully amortized a when the balance in the Accumulated Depreciatio account reaches $100,000. The equipment produced 50,000 units in 2020. (20 marks) Required: Determine the estimated residual value of the equipment. What is the amortizable cost of the equipment? Calculate depreciation expense for 2020 under each of the following methods: straight-line units-of-production iii. double-declining-balance d. If you were a new accountant in a company and you were asked to determine how best to depreciate a new machine they just bought; how would you determine the best method? What is the difference between your method and other method? How does your method affect the income statement? WWW.YORKVILLEU.CA 5.) On January 1, 2017, Vancouver Corporation paid $400,000 to purchase 40% of the outstanding voting stock of Montreal Corporation. The equity method is used to account for the investment. The following data relate to this investment. (20 marks) 2017 Dividends received from Montreal Corporation amounted to $20,000. Net income reported by Montreal Corporation was $200,000. Current market value of Montreal Corporation investment on December 31, 2017, was $700,000. 2018 Dividends received from Montreal Corporation amounted to $30,000. Net income reported by Montreal Corporation was $300,000. Current market value of English Court Corporation investment on December 31, 2018, was $860,000. The investment was sold on December 31, 2017, for $830,000. Prepare all journal entries for 2017 and 2018 relating to Vancouver Corporation's investment in Montreal Corporation

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