Question 3 Swifty Corp. acquired a property on September 15, 2020, for $280,000, paying $3,500 in transfer taxes and a $2,500 real estate fee. Based on the provincial assessment information, 80% of the property's value was related to the building and 20% to the land. It is estimated that the building, with proper maintenance, will last for 30 years, at which time it will be torn down and have zero salvage value. Swifty, however, expects to use it for 10 years only, as it is not expected to suit the company's purposes after that. The company should be able to sell the property for $157,000 at that time, with $50,000 of this amount being for the land. Swifty prepares financial statements in accordance with IFRS. Depreciation expense should be calculated to the nearest half month. Assuming a December 31 year end, identify the building's cost. Cost of the building LINK TO TEXT LINK TO TEXT Assuming a December 31 year end, identify the building's depreciable amount. Depreciable amount $ LINK TO TEXT LINK TO TEXT Assuming a December 31 year end, identify the building's useful life. Building's useful life years LINK TO TEXT LINK TO TEXT Assuming a December 31 year end, identify the depreciation expense for 2020, assuming the straight-line method. (Do not round intermediate calculations and round answer to O decimal places, e.g. 5,275.) Depreciation expense for 2020 $ Assuming a December 31 year end, identify the depreciation expense for 2020, assuming the straight-line method. (Do not round intermediate calculations and round answer to o decimal places, e.g. 5,275.) Depreciation expense for 2020 LINK TO TEXT LINK TO TEXT Assuming a December 31 year end, identify the depreciation expense for 2021, assuming the double-declining-balance method. (Do not round intermediate calculation and round answer to o decimal places, e.g. 5,275.) Depreciation expense for 2021 LINK TO TEXT LINK TO TEXT Assuming a December 31 year end, identify the building's carrying amount at December 31, 2021, assuming the double-declining-balance method. (Do not round Intermediate calculation and round answer to 0 decimal places, e.g. 5,275.) Building's carrying amount LINK TO TEXT LINK TO TEXT Assuming a December 31 year end, identify the depreciation expense for 2020, assuming the straight-line method and assuming Swifty prepares financial statements in accordance with ASPE. (Do not round Intermediate calculation and round answer to 0 decimal places, e.g. 5,275.) Depreciation expense 2020 LINK TO TEXT LINK TO TEXT Question 3 Swifty Corp. acquired a property on September 15, 2020, for $280,000, paying $3,500 in transfer taxes and a $2,500 real estate fee. Based on the provincial assessment information, 80% of the property's value was related to the building and 20% to the land. It is estimated that the building, with proper maintenance, will last for 30 years, at which time it will be torn down and have zero salvage value. Swifty, however, expects to use it for 10 years only, as it is not expected to suit the company's purposes after that. The company should be able to sell the property for $157,000 at that time, with $50,000 of this amount being for the land. Swifty prepares financial statements in accordance with IFRS. Depreciation expense should be calculated to the nearest half month. Assuming a December 31 year end, identify the building's cost. Cost of the building LINK TO TEXT LINK TO TEXT Assuming a December 31 year end, identify the building's depreciable amount. Depreciable amount $ LINK TO TEXT LINK TO TEXT Assuming a December 31 year end, identify the building's useful life. Building's useful life years LINK TO TEXT LINK TO TEXT Assuming a December 31 year end, identify the depreciation expense for 2020, assuming the straight-line method. (Do not round intermediate calculations and round answer to O decimal places, e.g. 5,275.) Depreciation expense for 2020 $ Assuming a December 31 year end, identify the depreciation expense for 2020, assuming the straight-line method. (Do not round intermediate calculations and round answer to o decimal places, e.g. 5,275.) Depreciation expense for 2020 LINK TO TEXT LINK TO TEXT Assuming a December 31 year end, identify the depreciation expense for 2021, assuming the double-declining-balance method. (Do not round intermediate calculation and round answer to o decimal places, e.g. 5,275.) Depreciation expense for 2021 LINK TO TEXT LINK TO TEXT Assuming a December 31 year end, identify the building's carrying amount at December 31, 2021, assuming the double-declining-balance method. (Do not round Intermediate calculation and round answer to 0 decimal places, e.g. 5,275.) Building's carrying amount LINK TO TEXT LINK TO TEXT Assuming a December 31 year end, identify the depreciation expense for 2020, assuming the straight-line method and assuming Swifty prepares financial statements in accordance with ASPE. (Do not round Intermediate calculation and round answer to 0 decimal places, e.g. 5,275.) Depreciation expense 2020 LINK TO TEXT LINK TO TEXT
