Bramble Corporation purchased a new plant asset on April 1, 2020, at a cost of $870,000. It was estimated to have a useful life of 20 years and a residual value of $330,000, a physical life of 30 years, and a salvage value of $0. Brambles accounting period is the calendar year. Bramble prepares financial statements in accordance with IFRS.

(a)

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Calculate the depreciation for this asset for 2020 and 2021 using the straight-line method. (Round answers to 0 decimal places, e.g. 5,275.)

		Depreciation
2020		$
2021		$

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2/2

(b)

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Calculate the depreciation for this asset for 2020 and 2021 using the double-declining-balance method. (Round answers to 0 decimal places, e.g. 5,275.)

		Depreciation
2020		$
2021		$

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Attempts: 1 of 10 used

Question Part Score

2/2

(c)

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Calculate the depreciation for this asset for 2020 and 2021 using the straight-line method and assuming Bramble prepares financial statements in accordance with ASPE. (Do not round intermediate calculations and round answers to 0 decimal places, e.g. 5,275.)

		Depreciation
2020		$
2021		$

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Attempts: 2 of 10 used

Question Part Score

2/2

(e)

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Your answer is partially correct.

Assume that additional information has been provided relating to the cost ($870,000). There are three components of the plant asset. Components 1, 2, and 3 have costs of $400,000, $264,000, and $206,000, respectively. The useful lives of components 1, 2, and 3 are 25, 20, and 30 years, respectively. Determine straight-line depreciation expense for 2020 and 2021 for each component under IFRS if the residual value is $140,000 for component 1, $164,000 for component 2, and $26,000 for component 3. (Do not round intermediate calculations and round answers to 0 decimal places, e.g. 5,275.)

		Depreciation expense
		2020		2021
Component 1		$		$
Component 2		$		$
Component 3		$		$