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Carla Vista Ltd. purchased equipment on January 1,2015 at a cost of $194,930. The equipment has an estimated useful life of 10 years and a
Carla Vista Ltd. purchased equipment on January 1,2015 at a cost of $194,930. The equipment has an estimated useful life of 10 years and a residual value of $10,280. Carla Vista realized that there was a declining demand for the product being produced by the equipment. Given this indicator of possible impairment, management determined that the recoverable amount of the asset on December 31, 2018 was $105,410. The company uses the straight-line method of depreciation. (a) Calculate the annual depreciation and the carrying amount at December 31, 2018
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