Monty Corp. purchased machinery for $495,000 on May 1, 2023. It is estimated that it will have a useful life of 10 years, residual value of $15,000, production of 480,000 units, and 30,000 working hours. The machinery will have a physical life of 15 years and a salvage value of $3,000. During 2024, Monty used the machinery for 2,650 hours and the machinery produced 24,500 units. Monty prepares financial statements in accordance with IFRS. From the information given, calculate the depreciation charge for 2024 under each of the following methods, assuming Monty has a December 31 year end. (a) Calculate the depreciation charge for 2024 under straight-line method.
Monty Corp. purchased machinery for $495,000 on May 1, 2023. It is estimated that it will have a useful life of 10 years, residual value of $15,000, production of 480,000 units, and 30,000 working hours. The machinery will have a physical life of 15 years and a salvage value of $3,000. During 2024, Monty used the machinery for 2,650 hours and the machinery produced 24,500 units. Monty prepares financial statements in accordance with IFRS. From the information given, calculate the depreciation charge for 2024 under each of the following methods, assuming Monty has a December 31 year end. (a) Calculate the depreciation charge for 2024 under straight-line method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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B. Calculate the
Depreciation per output unit /output unit
Depreciation charge for 2024
Calculate the depreciation charge for 2024 under working hours method.
Depreciation per hour
Depreciation charge for 2024
C. Calculate the depreciation charge for 2024 under declining-balance, using a 20% rate.
Depreciation charge for 2024
Transcribed Image Text:Monty Corp. purchased machinery for $495,000 on May 1, 2023. It is estimated that it will have a useful life of 10 years, residual value
of $15,000, production of 480,000 units, and 30,000 working hours. The machinery will have a physical life of 15 years and a salvage
value of $3,000. During 2024, Monty used the machinery for 2,650 hours and the machinery produced 24,500 units. Monty prepares
financial statements in accordance with IFRS.
From the information given, calculate the depreciation charge for 2024 under each of the following methods, assuming Monty has a
December 31 year end.
(a)
Calculate the depreciation charge for 2024 under straight-line method.
Depreciation charge for 2024 $
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