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Pina Colada Corp. purchased machinery for $375,000 on May 1,2020 . It is estimated that it will have a useful life of 10 years, residual
Pina Colada Corp. purchased machinery for $375,000 on May 1,2020 . It is estimated that it will have a useful life of 10 years, residual value of $15,000, production of 144,000 units, and 20,000 working hours. The machinery will have a physical life of 15 years and a salvage value of $3,000. During 2021 , Pina Colada Corp. used the machinery for 2,550 hours and the machinery produced 24,000 units. Pina Colada prepares financial statements in accordance with IFRS. From the information given, calculate the depreciation charge for 2021 under each of the following methods, assuming Pina Colada has a December 31 year end. (a) Your answer is incorrect. Calculate the depreciation charge for 2021 under straight-line method. Depreciation charge for 2021
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