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On January 1, 2020, Rasmus Mining Ltd. purchased new mining equipment costing $378,488, which will be depreciated on the assumption that the equipment will be
On January 1, 2020, Rasmus Mining Ltd. purchased new mining equipment costing $378,488, which will be depreciated on the assumption that the equipment will be useful for four years and have a residual value of $30,300 when the company is finished using it. The estimated output from this equipment, in tonnes, is as follows: 2020-101,000; 2021-29,400; 2022-95,700; 2023-59,300. The company is now considering possible methods of depreciation for this asset. (a) Calculate what the depreciation expense would be for each year of the asset's life, if the company chooses: i. The straight-line method Straight-line depreciation $ per year
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