Question
EcoTech Innovations Inc. owns the following assets: Asset Purchase Date Cost Useful Life Residual Value Wave Energy Converters Jan 1, 2020 $800,000 25 years $70,000
- EcoTech Innovations Inc. owns the following assets:
| Asset | Purchase Date | Cost | Useful Life | Residual Value |
|---|---|---|---|---|
| Wave Energy Converters | Jan 1, 2020 | $800,000 | 25 years | $70,000 |
| Geothermal Plants | July 1, 2021 | $1,500,000 | 30 years | $120,000 |
Instructions: a) Calculate the depreciation expense for each asset for the fiscal year 2023. b) Determine the balance in the accumulated depreciation account for each asset on December 31, 2023. c) Compute the net amount to be reported in the 2023 financial statements for each asset as of December 31, 2023.
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
11th Canadian edition Volume 1
1119048532, 978-1119048534
