Swifty Corp. purchased a machine on July 1, 2020, for $32,020. Swifty paid $280 in title...

Swifty Corp. purchased a machine on July 1, 2020, for $32,020. Swifty paid $280 in title fees and a legal fee of $275 related to the machine. In addition, Swifty paid $550 in shipping charges for delivery, and $475 to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 10 years, a total expected life of 12 years, a residual value of $6,000, and no salvage value. Swifty uses straight-line depreciation.

Calculate the 2020 depreciation expense if Swifty prepares financial statements in accordance with IFRS.

Depreciation expense

$enter the Depreciation expense in dollars


Link to Text

Calculate the 2020 depreciation expense if Swifty prepares financial statements in accordance with ASPE.

Depreciation expense

$enter the Depreciation expense in dollars

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Sheffield Corp. purchased a machine on July 1, 2020, for $30,975. Sheffield paid $210 in title...

Sheffield Corp. purchased a machine on July 1, 2020, for $30,975. Sheffield paid $210 in title fees and a legal fee of $175 related to the machine. In addition, Sheffield paid $590 in shipping charges for delivery, and $450 to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 10 years, a total expected life of 12 years, a residual value of $6,300, and no...

Pronghorn Corp. purchased a machine on July 1, 2017, for $32,000. Pronghorn paid $290 in title...

Pronghorn Corp. purchased a machine on July 1, 2017, for $32,000. Pronghorn paid $290 in title fees and a legal fee of $300 related to the machine. In addition, Pronghorn paid $500 in shipping charges for delivery, and paid $600 to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 10 years, a total expected life of 12 years, a residual value of $6,000, and...

Cominsky Company purchased a machine on July 1, 2018, for $28,000. Cominsky paid $200 in title...

Cominsky Company purchased a machine on July 1, 2018, for $28,000. Cominsky paid $200 in title fees and county property tax of $125 on the machine. In addition, Cominsky paid $500 shipping charges for delivery, and $475 was paid to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 6 years with a salvage value of $3,000. Determine the depreciation base of Cominsky’s new machine....

Geddie Products purchased a machine for $60,000 on July 1, 2020. The company estimates that the...

Geddie Products purchased a machine for $60,000 on July 1, 2020. The company estimates that the useful life of the asset is 4 years, and its life in hours = 10,000 hours. The estimated salvage value is 0. During 2020, the hours used were 1,250 hours. 1) Calculate the Depreciable Base and the depreciation expense of 2020 using the Straight-line method 2) Calculate the depreciation expense of 2020 using the double-declining balance method 3) Calculate the depreciation expense of 2021...

On July 1, 2020, Burgoyne Corp. purchased a new piece of equipment for $300,000. The equipment...

On July 1, 2020, Burgoyne Corp. purchased a new piece of equipment for $300,000. The equipment has an estimated useful life of 5 years and an estimated residual value of $25,000. Burgoyne uses the calendar year as its fiscal year, and records depreciation to the nearest month. a:$60,000 b:$30,000 c:$27,500 d:$55,000

On July 1, 2020, Molly’s Greenhouse purchased a new delivery truck for $75,000. She paid a...

On July 1, 2020, Molly’s Greenhouse purchased a new delivery truck for $75,000. She paid a $20,000 cash and signed a promissory note for the remainder. Molly estimates that the delivery truck will have a five-year useful life, or 175,000 kilometres and a residual value of $5,000. Molly’s Greenhouse has a December 31 year end. Molly drove the truck 14,000 km in 2020; 40,000 km in 2021; 41,000 in 2022; 39,000 in 2023, and 42,000 in 2024.. Prepare depreciation schedules...

Blue Manufacturing purchased a machine on January 1, 2020 for use in its factory. Blue paid...

Blue Manufacturing purchased a machine on January 1, 2020 for use in its factory. Blue paid $458,000 for the machine and estimated that it had a useful life of 10 years, at the end of which time the machine was expected to have a residual value of $40,000. During its life, the machine was expected to produce 380,000 units. During 2020, the machine produced 41,800 units, and produced 58,600 in 2021. The machine was subject to a 20% CCA rate,...

Machinery purchased for $41,200 by Swifty Corp. on January 1, 2015, was originally estimated to have...

Machinery purchased for $41,200 by Swifty Corp. on January 1, 2015, was originally estimated to have an 8-year useful life with a residual value of $6,000. Depreciation has been entered for five years on this basis. In 2020, it is determined that the total estimated useful life (including 2020) should have been 10 years, with a residual value of $7,000 at the end of that time. Assume straight-line depreciation and that Swifty Corp. uses IFRS for financial statement purposes. Prepare...

Swifty Company purchased a delivery truck for $26,000 on January 1, 2020. The truck has an...

Swifty Company purchased a delivery truck for $26,000 on January 1, 2020. The truck has an expected salvage value of $1,000, and is expected to be driven 100,000 miles over its estimated useful life of 10 years. Actual miles driven were 12,800 in 2020 and 12,000 in 2021. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciation expense $ per mile eTextbook and Media List of Accounts Compute depreciation expense for 2020...

On January 1, 2020, a machine was purchased for $900,000 by Young Co. The machine is...

On January 1, 2020, a machine was purchased for $900,000 by Young Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to St. Leger Inc. for 3 years on January 1, 2020, with annual rent payments of $150,955 due at the beginning of each year, starting January 1, 2020. The machine is expected to have a residual value at the end of...

Subjects