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Pronghorn Corp. purchased machinery for $ 417,000 on May 1, 2020. It is estimated that it will have a useful life of 10 years, residual
Pronghorn Corp. purchased machinery for $417,000 on May 1, 2020. It is estimated that it will have a useful life of 10 years, residual value of $17,000, production of 200,000 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, Pronghorn Corp. used the machinery for 2,250 hours and the machinery produced 28,000 units. Pronghorn prepares financial statements in accordance with IFRS.
From the information given, calculate the depreciation charge for 2021 under each of the following methods, assuming Pronghorn has a December 31 year end.
From the information given, calculate the depreciation charge for 2021 under each of the following methods, assuming Pronghorn has a December 31 year end.
(a)
Calculate the depreciation charge for 2021 under straight-line method.
Depreciation charge for 2021 | $Enter your answer in accordance to the question statement |
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