Kingbird Manufacturing purchased a machine on January 1, 2023 for use in its factory. Kingbird paid $734,000 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 $30,000. During its life, the machine was expected to produce 320,000 units. During 2023, the machine produced 33,700 units, and produced 48,600 in 2024. The machine was subject to a 20% CCA rate, and Kingbird's year-end was December 31. The machine is eligible for the Accelerated Investment Incentive.
Kingbird Manufacturing purchased a machine on January 1, 2023 for use in its factory. Kingbird paid $734,000 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 $30,000. During its life, the machine was expected to produce 320,000 units. During 2023, the machine produced 33,700 units, and produced 48,600 in 2024. The machine was subject to a 20% CCA rate, and Kingbird's year-end was December 31. The machine is eligible for the Accelerated Investment Incentive.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Kingbird Manufacturing purchased a machine on January 1, 2023 for use in its factory. Kingbird paid $734,000 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 $30,000.
During its life, the machine was expected to produce 320,000 units. During 2023, the machine produced 33,700 units, and produced
48,600 in 2024. The machine was subject to a 20% CCA rate, and Kingbird's year-end was December 31. The machine is eligible for
the Accelerated Investment Incentive.
Transcribed Image Text:* Your answer is incorrect.
Calculate the annual depreciation amount for 2023 and 2024 using the Capital Cost Allowance method.
Annual depreciation amount
$
2023
513800
$
2024
411040
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