019 20 021 022 20,000 20,000 18,000 12,000 264,000 310,000 134,000 112,000 Calculate the depreciation charges for each fiscal year under each of the following depreciation methods. (Round unit-of-output per unit to 4 decimal places, e.g. 15.2345 and Round other answers to O ecimal places, e.g. 5,275.)
019 20 021 022 20,000 20,000 18,000 12,000 264,000 310,000 134,000 112,000 Calculate the depreciation charges for each fiscal year under each of the following depreciation methods. (Round unit-of-output per unit to 4 decimal places, e.g. 15.2345 and Round other answers to O ecimal places, e.g. 5,275.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:What is the machine's carrying amount on the October 31, 2020 statement of financial position under the first four methods above? (Round answers to O decimal places, e.g. 5,275.)
Method
Straight-line
Activity method: output
Activity method: input
Declining balance
$
$
$
$
Carrying
Amount
Calculate the asset's tax value on October 31, 2020, assuming a CCA Class 8, with a rate of 20%. (Round answer to O decimal places, e.g. 5,275.)
The asset's tax value on October 31, 2020
$
Transcribed Image Text:On June 15, 2017, a second-hand machine was purchased for $187,000. Before being put into service, the equipment was overhauled at a cost of $9,800, and additional costs of $400 for direct material
and $800 for direct labour were paid in fine-tuning the controls. The machine has an estimated residual value of $6,000 at the end of its five-year useful life. The machine is expected to operate for
100,000 hours before it will be replaced and is expected to produce 1.20 million units in this time. Operating data for the next six fiscal years are provided below. The company has an October 31 fiscal year
end.
Year
2017
2018
2019
2020
2021
2022
Hours of Operation
10,000
20,000
20,000
20,000
18,000
12,000
Units Produced
110,000
270,000
264,000
310,000
134,000
112,000
Calculate the depreciation charges for each fiscal year under each of the following depreciation methods. (Round unit-of-output per unit to 4 decimal places, e.g. 15.2345 and Round other answers to O
decimal places, e.g. 5,275.)
1. Straight-line method. Pro-rate June 2017 and 2022 to half a month.
2. Activity method: based on output
3. Activity method: based on input
4. Double-declining-balance method. Pro-rate June 2017 to half a month.
5. CCA, Class 8, 20%
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