please full calculation and explanation On July 2, 2019, Vicuna Inc. purchased equipment....
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please full calculation and explanation
On July 2, 2019, Vicuna Inc. purchased equipment. Vicuna has a policy of calculating and recording depreciation for the portion of the year the asset is used. Vicuna has a December 31 year end. Other information pertaining to the new equipment follows: Cost of equipment $ 720,491 Residual value (at end of 6-year useful life) $ 28,820 Salvage value (at end of 7-year physical life) $ 7,205 Vicuna depreciates its capital assets based on the number of months in the current year in which the asset is owned REQUIRED: A. Assume that Vicuna follows IFRS. a) Determine the 2019 and 2020 depreciation expense assuming the straight-line method is used. b) Determine the 2019 and 2020 depreciation expense assuming the double-declining- balance method is used. B. Assume that Vicuna follows ASPE. Determine the 2019 and 2020 depreciation expense assuming that the straight-line method is chosen
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