Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Riverbed Corp. acquired a property on September 15, 2020, for $320,000, paying $3,800 in transfer taxes and a $2,000 real estate fee. Based on the
Riverbed Corp. acquired a property on September 15, 2020, for $320,000, paying $3,800 in transfer taxes and a $2,000 real estate fee. Based on the provincial assessment information, 75% of the property's value was related to the building and 25% to the land. It is estimated that the building, with proper maintenance, will last for 20 years, at which time it will be torn down and have zero salvage value. Riverbed, 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 $177,000 at that time, with $43,000 of this amount being for the land. Riverbed 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 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 $ e Textbook and Media Your answer is incorrect. 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 0 decimal places, e.g. 5,275.) Depreciation expense for 2021 $ 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 $ HA e Textbook and Media Your answer is incorrect. Assuming a December 31 year end, identify the depreciation expense for 2020, assuming the straight-line method and assuming Riverbed prepares financial statements in accordance with ASPE. (Do not round intermediate calculation and round answer to O decimal places, e.g. 5,275.) Depreciation expense 2020 $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started