Blue Spruce Corp. purchased machinery for $555,000 on May 1, 2020. It is estimated that it will have a useful life of 10
Posted: Sun Jun 05, 2022 7:53 pm
Blue Spruce Corp. purchased machinery for $555,000 on May 1,
2020. It is estimated that it will have a useful life of 10 years,
residual value of $15,000, production of 216,000 units, and 30,000
working hours. The machinery will have a physical life of 15 years
and a salvage value of $3,000. During 2021, Blue Spruce Corp. used
the machinery for 2,300 hours and the machinery produced 27,000
units. Blue Spruce prepares financial statements in accordance with
IFRS. From the information given, calculate the depreciation charge
for 2021 under each of the following methods, assuming Blue Spruce
has a December 31 year end.
2020. It is estimated that it will have a useful life of 10 years,
residual value of $15,000, production of 216,000 units, and 30,000
working hours. The machinery will have a physical life of 15 years
and a salvage value of $3,000. During 2021, Blue Spruce Corp. used
the machinery for 2,300 hours and the machinery produced 27,000
units. Blue Spruce prepares financial statements in accordance with
IFRS. From the information given, calculate the depreciation charge
for 2021 under each of the following methods, assuming Blue Spruce
has a December 31 year end.