TE 11 ' ' % 11 Titi TM Merge Center IN B H G F E D 1 Question 1: Capital Assets (20 marks) 2 On April 1, 2020, Evergreen purchased a tree grinding machine for $160,000. The machine was estimated to have a five-year 3 useful life and an $8,000 residual value. The company has a December 31st year rend. 4 5 It was also estimated to have a total useful life of 12,000 hours. It is used for 1,600 hours in the year ended December 31, 2020, 3,000 hours in the year ended December 31, 2021, 2,900 hours in the year ended December 31, 2022, 2,000 hours in the year ended December 31, 2023,2,000 hours in the year ended 2024 and 500 in the year ended 2025. 7 8 (1) How much depreciation expense should Evergreen record in each of 2020 to 2025 under each depreciation method: (a) 10 straight-line, (bunits of production, and (c) double diminishing cost? Units of Double Diminishing Balance Straight Line Production 12 Yea Method Method Carrying Amount Depreciation Expense 13 2 decimal) Tound rate 10 14 2020 15 2011 15 2022 17 2023 18 2024 = b Core Set Question 1 Decreation Question 2 Shareholders Eowy GW B C D Units of Double Diminishing Balance Straight Line Production Method Method Carrying Amount Depreciation Expense (round rate to 12 Yea 2 decimal) 3 14 2020 15 2021 16 2022 17 2023 18 2024 19 2025 20 21 22 (2) What is the accumulated depreciation under each method for the year ended December 31, 2021? 23 24 Units of Double Straight Line Production Diminishing Method Method Balance 26 2021 2 28 5 Yes blo Se Question 1 Depreciation Question 2 Shareholders Equity Question 3 Ratio Analysis Question 4 Multiple Choic