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 no salvage value. Pronghorn uses straight-line depreciation.

Calculate the 2017 depreciation expense if Pronghorn prepares financial statements in accordance with IFRS. (Do not round intermediate calculation and round answer to 0 decimal places, e.g. 5,275.)

Depreciation expense $_____________

Calculate the 2017 depreciation expense if Pronghorn prepares financial statements in accordance with ASPE. (Do not round intermediate calculation and round answer to 0 decimal places, e.g. 5,275.)

Depreciation expense $____________

Expert Solution

ekkarill92 answered 1 year ago

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