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On January 1, 2020, Selling Sunset, Inc. purchased a new mansion, with an estimated useful life of 30 years, for $6,400,000 and no salvage value.
On January 1, 2020, Selling Sunset, Inc. purchased a new mansion, with an estimated useful life of 30 years, for $6,400,000 and no salvage value. The components of the asset and their useful lives are as follows: Component Cost Useful life Spanish tile roof $100,000 22 years Security system 500,000 14 years Infinity pool 1,350,000 15 years Other 4,450,000 30 years Selling Sunset, Inc. uses the straight-line method of depreciation. Under IFRS, the entry to record depreciation expense on the asset at December 31, 2020 will include a credit to accumulated depreciation of
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