Chapter 11, Problem 11.24E

Disclosure of Property, Plant, and Equipment, IFRS. Use the information in E11-14, part (a) to prepare the required footnote disclosure under IFRS for Kurtis Koal Company, Inc.’s property, plant and equipment for Years 1 and 2, including a statement of its accounting policy and a table with account balances.

E11-14. Depreciation Methods, Disposal, IFRS. Repeat the requirements in E11-13 assuming that Kurtis Koal Company, Inc. is an IFRS reporter and the mining machine has two components: casing and engine. The amount allocated to the engine is $800,000. The engine has a 6-year useful life and $60,000 salvage value. The amount allocated to the casing is $100,000. The casing has a 10-year useful life and no salvage value. The straight-line method is

Required

1. a. Prepare the depreciation schedule for the machine.

E11-13. Depreciation Methods, Disposal. Kurtis Koal Company, Inc. purchased a new mining machine at a total cost of $900,000 on the first day of its fiscal year. The firm estimates that the machine has a useful life of 6 years or 6,000,000 tons of coal and a residual value of $60,000 at the end of its useful life. The following schedule indicates the actual number of tons of coal mined with the machine per year: