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Vane Ltd. purchased equipment on January 1, 2015 at a cost of $190,590. The equipment has an estimated useful life of 10 years and a
Vane Ltd. purchased equipment on January 1, 2015 at a cost of $190,590. The equipment has an estimated useful life of 10 years and a residual value of $9,380. Vane realized that there was a declining demand for the product being produced by the equipment. Given this indicator of possible impairment, management determined that the recoverable amount of the asset on December 31, 2018 was $106,630. The company uses the straight-line method of depreciation.
Calculate the annual depreciation and the carrying amount at December 31, 2018.
A) Annual depreciation
B) Carrying amount
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