Marigold Corp. purchased machinery for $576,000 on May 1, 2017. It is estimated that it...
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Marigold Corp. purchased machinery for $576,000 on May 1, 2017. It is estimated that it will have a useful life of 10 years, residual value of $16,000, production of 560,000 units, and 40,000 working hours. The machinery will have a physical life of 15 years and a salvage value of $3,000. During 2018, Marigold Corp. used the machinery for 2,200 hours and the machinery produced 26,500 units. Marigold prepares financial statements in accordance with IFRS. From the information given, calculate the depreciation charge for 2018 under each of the following methods, assuming Marigold has a December 31 year end.
Calculate the depreciation charge for 2018 under CCA at 20%.
Depreciation charge for 2018
$
Your answer is incorrect. Try again.
Assume that Marigold is a small privately owned company that follows ASPE and uses straight-line depreciation. How would depreciation expense differ, if at all?
Under ASPE
$
Under IFRS
$
Depreciation expense under ASPE is
equal to the depreciation under IFRShigher than depreciation under IFRSlower than depreciation under IFRS
.
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