Question
Flintwood Inc. purchased a machine on July 1, 2019, for $30,890. Indigo paid $230 in title fees and a legal fee of $225 related to
Flintwood Inc. purchased a machine on July 1, 2019, for $30,890. Indigo paid $230 in title fees and a legal fee of $225 related to the machine. In addition, Indigo paid $530 in shipping charges for delivery, and $525 to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 10 years, a total expected life of 12 years, a residual value of $5,600, and no salvage value. Indigo uses straight-line depreciation.
Calculate the 2019 depreciation expense if Indigo prepares financial statements in accordance with IFRS.
Calculate the 2019 depreciation expense if Indigo prepares financial statements in accordance with ASPE.
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
8th Edition
1260247848, 978-1260247848
