Question
Monty Corporation purchased a new plant asset on April 1, 2020, at a cost of $864,000. It was estimated to have a useful life of
Monty Corporation purchased a new plant asset on April 1, 2020, at a cost of $864,000. It was estimated to have a useful life of 20 years and a residual value of $324,000, a physical life of 30 years, and a salvage value of $0. Montys accounting period is the calendar year. Monty prepares financial statements in accordance with IFRS.
a) Calculate the depreciation for this asset for 2020 and 2021 using the straight-line method. (Round answers to 0 decimal places, e.g. 5,275.)
b) Calculate the depreciation for this asset for 2020 and 2021 using the double-declining-balance method. (Round answers to 0 decimal places, e.g. 5,275.)
c) Calculate the depreciation for this asset for 2020 and 2021 using the straight-line method and assuming Monty prepares financial statements in accordance with ASPE. (Do not round intermediate calculations and round answers to 0 decimal places, e.g. 5,275.)
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