Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bridgeport Corp. acquired a property on September 15, 2020, for $300,000, paying $3,800 in transfer taxes and a $2,800 real estate fee. Based on the

image text in transcribed

Bridgeport Corp. acquired a property on September 15, 2020, for $300,000, paying $3,800 in transfer taxes and a $2,800 real estate fee. Based on the provincial assessment information, 85% of the property's value was related to the building and 15% to the land. It is estimated that the building, with proper maintenance, will last for 20 years, at which time it will be torn down and have zero salvage value. Bridgeport, however, expects to use it for 10 years only, as it is not expected to suit the company's purposes after that. The company should be able to sell the property for $175,000 at that time, with $44,000 of this amount being for the land. Bridgeport prepares financial statements in accordance with IFRS. Depreciation expense should be calculated to the nearest half month. Assuming a December 31 year end, identify the building's cost. Cost of the building $ Assuming a December 31 year end, identify the building's depreciable amount. Depreciable amount $ Assuming a December 31 year end, identify the building's useful life. Building's useful life years Assuming a December 31 year end, identify the depreciation expense for 2020, assuming the straight-line method. (Do not round intermediate calculations and round answer to 0 decimal places, eg. 5,275.) Depreciation expense for 2020 $ Assuming a December 31 year end, identify the depreciation expense for 2021, assuming the double-declining-balance method. (Do not round intermediate calculation and round answer to 0 decimal places, eg. 5,275.) Depreciation expense for 2021 $ Assuming a December 31 year end, identify the building's carrying amount at December 31, 2021, assuming the double-declining- balance method. (Do not round intermediate calculation and round answer to O decimal places, e.g. 5,275.) Building's carrying amount $ Assuming a December 31 year end, identify the depreciation expense for 2020, assuming the straight-line method and assuming Bridgeport prepares financial statements in accordance with ASPE. (Do not round intermediate calculation and round answer to O decimal places, e.g. 5,275.) Depreciation expense 2020 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting In A Nutshell Accounting For The Non-specialist

Authors: Walker, Janet

3rd Edition

075068738X, 9780750687386

More Books

Students also viewed these Accounting questions

Question

Explain the various kinds of retirement plans.

Answered: 1 week ago

Question

Explain workplace flexibility (work-life balance).

Answered: 1 week ago

Question

Discuss global issues in employee benefits.

Answered: 1 week ago