Novak Corp. purchased a piece of equipment on February 1, 2020, for $96,960. The equipment has an estimated useful life of 8 years, with a residual value of $24,000, and an estimated physical life of 10 years, with no salvage value. The equipment was delivered to Novaks factory floor, installed, and in working condition, on March 1, 2020. On April 1, 2020, Novaks staff used the equipment to produce the first saleable units.

a. Calculate the 2020 depreciation expense if Novak uses straight-line depreciation and prepares financial statements in accordance with IFRS.

b. Calculate the 2020 depreciation expense if Novak prepares financial statements in accordance with ASPE .