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Depreciation Conundrum Searay 3 8 0 Inc. ( Searay ) is a competitor of Formula 4 0 0 SS Inc. The company has changed from
Depreciation Conundrum
Searay Inc. Searay is a competitor of Formula SS Inc. The company has
changed from ASPE to IFRS, and the yearend is December To expand the company,
on January they purchased a new property for a lump sum price of $ million;
million for the land and million for the building. The building was estimated to
have a useful life of years and uses the straightline depreciation method. On
December before recording depreciation, Searay evaluated its assets for
impairment. The fair value less costs of disposal of the land was determined to be $
million and value in use million. The fair value less costs of disposal of the building
was determined to be million and value in use of million.
The company CFO, Vanceless Nominee Jr needs to calculate the depreciation for
to Then determine if any the amount of impairment loss for December
Also do not forget to calculate depreciation expense for
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