Exercise 11 8 Sandhill Company Ltd buys equipment on January 1, 2020, for $323,000 cash The asset is expected to have a useful life of 12 years and a residual value of $35,000 Sandhill prepares financial statements under IFRS Calculate the amount of depreciation for each of 2020, 2021, and 2022 using the straight line method Depreciation 2020 $ 2021 $ 2022 $ Calculate the amount of depreciation for each of 2020, 2021, and 2022 using the double declining balance method (Round percentages to to 2 decimal places e g 52 75 and round dollar amounts to the nearest dollar, e g 5,275 ) Depreciation 2020 $ 2021 $ 2022 $ Assume that the equipment consists of an input device with a cost of $30,000, residual value of $5,000, and useful life of 5 years a processor with a cost of $120,000, residual value of $12,000, and useful life of 10 years and an output device with a cost of $173,000, residual value of $22,000, and useful life of 12 years Prepare the journal entry to record the purchase on January 1, 2020 (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Account Titles and Explanation Debit Credit Equipment Output Device No Entry Equipment Processor Equipment Input Device Cash No Entry Cash Equipment Input Device Equipment Output Device Equipment Processor Equipment Processor Equipment Output Device Equipment Input Device Cash No Entry Equipment Input Device Equipment Processor Cash No Entry Equipment Output Device Assume the information given in part (c) above Also assume that the benefits of the input device and processor are expected to flow to Sandhill evenly over time, but that the output device is expected to provide the greatest benefits in the early years Calculate the amount of depreciation for 2020 using the most appropriate methods (Round percentages to to 2 decimal places e g 52 75 and round dollar amounts to the nearest dollar, e g 5,275 ) Depreciation for 2020 $Enter your answer in accordance to the question statement Assume the information given in part (c) with respect to the cost components The equipment is expected to provide benefits evenly over time Also assume that the equipment has a salvage value of $32,000 and a physical life of 14 years The salvage values of the input device, processor, and output device are $3,000, $10,000, and $19,000, respectively The physical lives of the input device, processor, and output device are 6 years, 12 years, and 14 years, respectively Calculate the amount of depreciation for 2020, 2021, and 2022 using the straight line method Sandhill Company Ltd prepares financial statements under ASPE (Round answer to 0 decimal places, e g 5,275 ) Depreciation 2020 $ 2021 $ 2022 $ Question Attempts 0 of 4 used SAVE FOR LATER SUBMIT ANSWER

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Exercise 11-8 Sandhill Company Ltd. buys equipment on January 1, 2020, for $323,000 cash. The asset is expected to have a useful life of 12

Exercise 11-8

Sandhill Company Ltd. buys equipment on January 1, 2020, for $323,000 cash. The asset is expected to have a useful life of 12 years and a residual value of $35,000. Sandhill prepares financial statements under IFRS.

Calculate the amount of depreciation for each of 2020, 2021, and 2022 using the straight-line method.

		Depreciation
2020		$
2021		$
2022		$

Calculate the amount of depreciation for each of 2020, 2021, and 2022 using the double-declining-balance method. (Round percentages to to 2 decimal places e.g. 52.75 and round dollar amounts to the nearest dollar, e.g. 5,275.)

		Depreciation
2020		$
2021		$
2022		$

Assume that the equipment consists of an input device with a cost of $30,000, residual value of $5,000, and useful life of 5 years; a processor with a cost of $120,000, residual value of $12,000, and useful life of 10 years; and an output device with a cost of $173,000, residual value of $22,000, and useful life of 12 years. Prepare the journal entry to record the purchase on January 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
Equipment - Output Device No Entry Equipment - Processor Equipment - Input Device Cash
No Entry Cash Equipment - Input Device Equipment - Output Device Equipment - Processor
Equipment - Processor Equipment - Output Device Equipment - Input Device Cash No Entry
Equipment - Input Device Equipment - Processor Cash No Entry Equipment - Output Device

Assume the information given in part (c) above. Also assume that the benefits of the input device and processor are expected to flow to Sandhill evenly over time, but that the output device is expected to provide the greatest benefits in the early years. Calculate the amount of depreciation for 2020 using the most appropriate methods. (Round percentages to to 2 decimal places e.g. 52.75 and round dollar amounts to the nearest dollar, e.g. 5,275.)

Depreciation for 2020

$Enter your answer in accordance to the question statement

Assume the information given in part (c) with respect to the cost components. The equipment is expected to provide benefits evenly over time. Also assume that the equipment has a salvage value of $32,000 and a physical life of 14 years. The salvage values of the input device, processor, and output device are $3,000, $10,000, and $19,000, respectively. The physical lives of the input device, processor, and output device are 6 years, 12 years, and 14 years, respectively. Calculate the amount of depreciation for 2020, 2021, and 2022 using the straight-line method. Sandhill Company Ltd. prepares financial statements under ASPE. (Round answer to 0 decimal places, e.g. 5,275.)