was expected that the machine could be used for 10 years, after which the residual value would be zero. However, Whisper inds intends to use the machine for only 8 years and expects to then be able to sell it for $1,800. The invoice for Machine n as paid on May 5, 2023. Whispering Winds has a December 31 year end. Depreciation expense should be calculated to the alf month. Whispering Winds follows IFRS for financial statement purposes. Your answer is correct. Calculate the depreciation expense for the years indicated using the following methods. (Do not round intermediate calculat Round final answers to O decimal places, eg 5.275) 1. Straight-line method for the fiscal years ended December 31, 2023 and 2024 2. Double-declining-balance method for the fiscal years ended December 31, 2023 and 2024 1. Straight-line 2. Double-declining-balance $ 2023 7960 16220 $ 2024 11940 20275
was expected that the machine could be used for 10 years, after which the residual value would be zero. However, Whisper inds intends to use the machine for only 8 years and expects to then be able to sell it for $1,800. The invoice for Machine n as paid on May 5, 2023. Whispering Winds has a December 31 year end. Depreciation expense should be calculated to the alf month. Whispering Winds follows IFRS for financial statement purposes. Your answer is correct. Calculate the depreciation expense for the years indicated using the following methods. (Do not round intermediate calculat Round final answers to O decimal places, eg 5.275) 1. Straight-line method for the fiscal years ended December 31, 2023 and 2024 2. Double-declining-balance method for the fiscal years ended December 31, 2023 and 2024 1. Straight-line 2. Double-declining-balance $ 2023 7960 16220 $ 2024 11940 20275
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Topic Video
Question
A 84.
Transcribed Image Text:Whispering Winds Corp. purchased Machine no. 201 on May 1, 2023. The following information relating to Machine no. 201 was
gathered at the end of May:
Price
Credit terms
Freight costs
Preparation and installation costs
Labour costs during regular production operations
(a)
It was expected that the machine could be used for 10 years, after which the residual value would be zero. However, Whispering
Winds intends to use the machine for only 8 years and expects to then be able to sell it for $1,800. The invoice for Machine no. 201
was paid on May 5, 2023. Whispering Winds has a December 31 year end. Depreciation expense should be calculated to the nearest
half month. Whispering Winds follows IFRS for financial statement purposes.
Your answer is correct.
Calculate the depreciation expense for the years indicated using the following methods. (Do not round intermediate calculations.
Round final answers to O decimal places, eg. 5,275.)
(b)
1. Straight-line method for the fiscal years ended December 31, 2023 and 2024
2. Double-declining-balance method for the fiscal years ended December 31, 2023 and 2024
1. Straight-line
2. Double-declining-balance
eTextbook and Media
Solution
* Your answer is incorrect.
CCA for 2023 $
$94,000
2/10,n/30
$
CCA for 2024 $
$900
$4,300
$12,000
$
2023
7960
16220
$
$
2024
11940
20275
Calculate the capital cost allowance for the 2023 and 2024 tax returns, assuming a CCA class with a rate of 25% and that the
machine is eligible for the Accelerated Investment Incentive. (Round answers to O decimal places, e.g. 5,275
Attempts: unlimited
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