Straight line method : Under the straight-line method of depreciation , the same amount of depreciation is allocated every year over the estimated useful life of an asset. Depreciation expense = Cost of the asset – Salvage value Estimated useful life of the asset Partial period depreciation: Partial period depreciation is calculated when acquisition and disposal occur at different times in a fiscal year, a company must determine the depreciation, depletion, and amortization to record for the part of the year that each asset actually is used. To determine: The depreciation as per GAAP for 2016 and 2017 on machine.

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Chapter 11, Problem 11.8E

(1)

To determine

Straight line method:

Under the straight-line method of depreciation, the same amount of depreciation is allocated every year over the estimated useful life of an asset.

Depreciation expense = Cost of the asset – Salvage valueEstimated useful life of the asset

Partial period depreciation:

Partial period depreciation is calculated when acquisition and disposal occur at different times in a fiscal year, a company must determine the depreciation, depletion, and amortization to record for the part of the year that each asset actually is used.

To determine: The depreciation as per GAAP for 2016 and 2017 on machine.

(2)

To determine

To calculate: Depreciation for 2016 and 2017 applying the IFRS treatment.

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