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Question 6 Sarasota Corp. purchased machinery for $330,000 on May 1, 2017. It is estimated that it will have a useful life of 10 years,
Question 6 Sarasota Corp. purchased machinery for $330,000 on May 1, 2017. It is estimated that it will have a useful life of 10 years, residual value of $10,000, production of 160,000 units, and 20,000 working hours. The machinery will have a physical life of 15 years and a salvage value of $3,000. During 2018, Sarasota Corp. used the machinery for 2,700 hours and the machinery produced 26,000 units. Sarasota prepares financial statements in accordance with IFRS. From the information given, calculate the depreciation charge for 2018 under each of the following methods, assuming Sarasota has a December 31 year end. (a) ZYour answer has been saved and sent for grading. See Gradebook for score details. Calculate the depreciation charge for 2018 under straight-line method. 32000 Depreciation charge for 2018 (a) Straight-line Senter a dollar amount (b) Units of output Senter a dollar amount Working hours Senter a dollar amount Sum-of-the-years' digits Senter a dollar amount (d) (e) Declining-balance (use 20% as the annual rate)
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