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Marigold Corp. purchased Machine no. 201 on May 1, 2020. The following information relating to Machine no. 201 was gathered at the end of
Marigold Corp. purchased Machine no. 201 on May 1, 2020. The following information relating to Machine no. 201 was gathered at the end of May: Price Credit terms Freight-in costs Preparation and installation costs $83,000 2/10, n/30 $800 $3,600 Labour costs during regular production operations $10,000 It was expected that the machine could be used for 10 years, after which the residual value would be zero. However, Marigold intends to use the machine for only eight years and expects to then be able to sell it for $1,500. The invoice for Machine no. 201 was paid on May 5, 2020. Marigold has a December 31 year end. Depreciation expense should be calculated to the nearest half month. Marigold follows IFRS for financial statement purposes.
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