On June 30, 2013, Rosetta Granite purchased a machine for $146,000. The estimated useful life of the machine is eight years and no residual value is anticipated. An important component of the machine is a specialized high speed drill that will need to be replaced in four years. The $30,000 cost of the drill is included in the $146,000 cost of the machine. Rosetta uses the straight-line depreciation method for all machinery.

Required:

1.

Calculate depreciation for 2013 and 2014 applying the typical U.S. GAAP treatment.

	2013	2014
Depreciation

2.

Calculate depreciation for 2013 and 2014 applying IFRS.

	2013	2014
Depreciation