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right answer please Crescent Limited acquired a machine on Sept 1, 2018 for $39,500. Installation costs for the machine was $1,200. On Sept 1, 2019,
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Crescent Limited acquired a machine on Sept 1, 2018 for $39,500. Installation costs for the machine was $1,200. On Sept 1, 2019, in order to reduce operating costs, a custom extension was added to the machine resulting in an expenditure to the company of $5,200. The original residual value was $1,700. Due to the extension, the residual value has been changed to $2,145. Also, total estimated useful life has been changed from total life of 8 years to total life of 10 years. On July 1, 2020, Crescent Limited purchased a new machine with a market value of $40,000. As part of this acquisition, the company traded in its old machine (which had a fair value of $32,250) and paid $8,700 in cash. Assume a December 31 year end. The company uses IFRS. Required: Answer the next three questions using the above information. Round all answers to the Dollar. 1. What is the new Depreciation Expense per year calculated on Sept 1, 2019 due to the changes and the new custom extension? (2 marks) $ 2. What is depreciation expense for the old machine for year ended December 31, 2018, for year ended December 31, 2019 and for 2020 up to July 1, 2020? (3 marks) At December 31, 2018: $ At December 31, 2019: $ From Jan 1, 2020 to July 1, 2020: $ 3. Record the journal entry to record the eychanie custom extension? (2 marks) $ 2. What is depreciation expense for the old machine for year ended December 31, 2018, for year ended December 31, 2019 and for 2020 up to July 1, 2020? (3 marks) At December 31, 2018: $ At December 31, 2019: $ From Jan 1, 2020 to July 1, 2020: $ 3. Record the journal entry to record the exchange of assets transaction on July 1, 2020 (Assume there is commercial substance) (5 marks) New Machine $ Accumulated Deprecation, Old Machine $ Loss $ $ Old Machine $ CashStep by Step Solution
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