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right answer please Indigo Corp. purchased Machine no. 201 on May 1, 2020. The following information relating to Machine no. 201 was gathered at the
right answer please
Indigo Corp. purchased Machine no. 201 on May 1, 2020. The following information relating to Machine no. 201 was gathered at the end of May: Price $104,000 Credit terms 2/10, n/30 Freight-in costs $1,000 Preparation and installation costs $4,600 Labour costs during regular production operations $13,000 It was expected that the machine could be used for 10 years, after which the residual value would be zero. However, Indigo intends to use the machine for only eight years and expects to then be able to sell it for $1,800. The invoice for Machine no. 201 was paid on May 5, 2020. Indigo has a December 31 year end. Depreciation expense should be calculated to the nearest half month. Indigo follows IFRS for financial statement purposes. Calculate the depreciation expense for the years indicated using the following methods. (Do not round intermediate calculations and round final answers to 0 decimal places, e.g. 5,275.) - Calculate the depreciation expense for the years indicated using the following methods. (Do not round intermediate calculations and round final answers to 0 decimal places, e.g. 5,275.) 1. Straight-line method for the fiscal years ended December 31, 2020 and 2021 2. Double-declining-balance method for the fiscal years ended December 31, 2020 and 2021 2020 2021 1. Straight-line $ 2. Double-declining balance ta $ $ ta Calculate the capital cost allowance for the 2020 and 2021 tax returns, assuming a CCA class with a rate of 25%. (Round answers to O decimal places, e.g. 5,275.) CCA for 2020 ta CCA for 2021 $ How would the calculation change for 2020 and 2021 based on the new CCA rules implemented in late 2018 (see footnote 20) assuming this is "eligible property"? (Round answers to 0 decimal places, e.g. 5,275.) CCA for 2020 $ CCA for 2021 $ Assume that Indigo selects the double-declining-balance method of depreciation. In 2022, demand for the product produced by the machine decreases sharply, due to the launch of a new and better competing product on the market. On August 15, 2022, the management of Indigo meets and decides to discontinue manufacturing the product. On September 15, 2022, a formal plan to sell the machine is authorized. On this date, the machine meets all criteria for classification as held for sale, and the machine's fair value less costs to sell is $80,000. Calculate the depreciation expense for 2022. (Do not round intermediate calculations and round answers to O decimal places, e.g. 5,275.) Depreciation expense for 2022 $Step by Step Solution
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