Question 5 Depreciation (8 marks) Caring Clinic Inc. (CCI) provides cosmetic procedures and surgeries not...
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Question 5 Depreciation (8 marks) Caring Clinic Inc. (CCI) provides cosmetic procedures and surgeries not funded by Saskatchewan Health. On April 1, 2019, CCI took delivery of a new surgical laser purchased at a cost of $88,000. The laser is expected to have a useful life of 5 years or 10,000 hours. The estimated residual value is $4,000. They will use the machine for 1,600 hours in 2019 and 2.400 hours in 2020. CCI's doctors know that there are different ways to depreciate the laser, but they are not familiar with the details. You, CCI's accountant, have been asked to calculate the depreciation expense for the years ending December 31, 2019 and 2020 under the double diminishing balance AND units of activity methods. You plan to provide detailed supporting calculations to allow the doctors to understand your work and round all amounts to the nearest dollar
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