E9.8 on page 9-38, but note the following:

a) Follow the instructions for E9.8 on page 9-38, but note the following:

• Ignore GST.
• Replace the term personal property with central air conditioning.
• Show all your workings.

2. Use the same facts per the textbook, but assume a yearly accounting period ending on 31 May 2020. Prepare the adjusting journal entry for depreciation on that date.
3. Prior to the IFRS requirement to depreciate components separately, all of the 2,400,000 may well have been depreciated using the useful life and residual value of the building. Calculate the depreciation expense for the calendar year 2020 under this scenario. Compare this with what you calculated for Instruction a). If management were opportunistic, would they have preferred the result just calculated or the result in a)? Explain why.

a. Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units of-activity method, and (3) the double-declining-balance method. b. Assume that Tanger uses the straight-line method. 1. Prepare the journal entry to record 2020 depreciation. 2. Show how the truck would be reported in the December 31, 2020, statement of financial position. E9.8 (LO 2) Mooney Ltd. completed construction of an office building for 2,400,000 on December 31. 2019. The company estimated that the building would have a residual value of 0 and a useful life of 40 years. A more detailed review of the expenditures related to the building indicates that 300,000 of the total cost was used for personal property and 180,000 for land improvements. The personal property has a depreciable life of 5 years and land improvements have a depreciable life of 10 years. Instructions Compute depreciation expense for 2020 using component depreciation and the straight-line method E9.9 (LO 2) Steve Grant, the new controller of Greenbriar Ltd., has reviewed the expected useful lives and residual values of selected depreciable assets at the beginning of 2020. His findings are as follows Type of Asset Building Warehouse Cost Accumulated Depreciation 1/1/20 190,000 18,000 Date Aequired 1/1/10 1/1/15 Residual Value Old Total Useful Life in Years Old Proposed 40 50 25 20 Proposed 40,000 18,000 800,000 100,000 10,000 preparing