Question

Q2. (25 marks) Calculate depreciation and CCA On July 2, 2019, Vicuna Inc. purchased equipment for $720,000. This equipment h
0 0
Add a comment Improve this question Transcribed image text
Answer #1

declining method: competation of depreciation under douce Rate of depreciation for 2019 Un : LoDl, 6years 33.3). DepreciatiComputation of depreciatim vender capital cost Since the anet is a class &aket with maximum ($ 720000 x101.] ($648000 X 200%

Add a comment
Know the answer?
Add Answer to:
Q2. (25 marks) Calculate depreciation and CCA On July 2, 2019, Vicuna Inc. purchased equipment for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • On July 2, 2019, Vicuna Inc. purchased equipment for $720,000. This equipment has an estimated useful...

    On July 2, 2019, Vicuna Inc. purchased equipment for $720,000. This equipment has an estimated useful life of six years and an estimated residual value of $30,000. Depreciation is taken for the portion of the year the asset is used. The asset is a Class 8 asset with a maximum CCA rate of 20%. Vicuna has a December year end. Instructions a) Complete the schedule below by determining the depreciation expense/CCA and year-end book values/UCC for 2019 and 2020 using...

  • DEPRECIATION METHODS Ten O'Clock, Inc. purchased a vanon Lamar 2018 for SA0000. Estimated life of the...

    DEPRECIATION METHODS Ten O'Clock, Inc. purchased a vanon Lamar 2018 for SA0000. Estimated life of the van was live years, and its estimated residual value was $90.000. Ten O'Clock uses the straight-line method of depreciation. Prepare the depreciation schedule. Depreciation Expense Book Value at End of Year 2018 2019 2018 2019 Method Straight-line On January 1, 2019, Sapphire Manufacturing Corporation purchased a machine for $10,000,000. The corporation expects to use the machine for 24,000 hours over the next six years....

  • On July 1, 2020, Swifty Company purchased for $6,120,000 snow-making equipment having an estimated useful life...

    On July 1, 2020, Swifty Company purchased for $6,120,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $255,000. Depreciation is taken for the portion of the year the asset is used. Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method. 2020 2021 Sum-of-the-Years'-Digits Method Equipment Less: Accumulated Depreciation $6,120,000 $6,120,000 Year-End Book Value $6,120,000 $6,120,000...

  • On July 1, 2020, Blue Spruce Company purchased for $3,060,000 snow-making equipment having an estimated useful...

    On July 1, 2020, Blue Spruce Company purchased for $3,060,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $127,500. Depreciation is taken for the portion of the year the asset is used. Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method. 2020 2021 Sum-of-the-Years'-Digits Method Equipment Less: Accumulated Depreciation $3,060,000 $3,060,000 Year-End Book Value Depreciation...

  • On July 1, 2020, Martinez Company purchased for $4,680,000 snow-making equipment having an estimated useful life...

    On July 1, 2020, Martinez Company purchased for $4,680,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $195,000. Depreciation is taken for the portion of the year the asset is used Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method 2. double-declining balance method 2020 2021 Sum-of-the-Years'-Digits Method Equipment $4,680,000 $4,680,000 Less: Accumulated Depreciation Year-End Book Value Depreciation Expense...

  • Testbank Problem 134 On July 1, 2020, Novak Company purchased for $5,040,000 snow-making equipment having an...

    Testbank Problem 134 On July 1, 2020, Novak Company purchased for $5,040,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $210,000. Depreciation is taken for the portion of the year the asset is used. Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method. 2020 2021 Sum-of-the-Years'-Digits Method Equipment $5,040,000 $5,040,000 Less: Accumulated Depreciation $ $...

  • Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at...

    Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at a cost of $12,000 that is estimated to have a useful life of five years and a residual value of $3,000. Required Prepare a depreciation schedule showing annual depreciation expense and year-end accumulated depreciation and book value over the life of the asset using the following methods. a. Straight-line method. b. Sum-of-the-years'-digits method. C. Double-declining-balance method. Straight-line Sum-of-the-years'-digits Double-declining balance c. Double-Declining-Balance Depreciation Method...

  • Testbank Problem 134 On July 1, 2020, Blue Spruce Company purchased for $6,660,000 snow-making equipment having...

    Testbank Problem 134 On July 1, 2020, Blue Spruce Company purchased for $6,660,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $277,500. Depreciation is taken for the portion of the year the asset is used. Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method. 2020 2021 Sum-of-the-Years'-Digits Method Equipment $6,660,000 $6,660,000 Less: Accumulated Depreciation $...

  • Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at...

    Preparing Depreciation Schedules Using Various Depreciation Methods Frito Inc. acquired equipment on January 1, 2020, at a cost of $12,000 that is estimated to have a useful life of five years and a residual value of $3,000. Required Prepare a depreciation schedule showing annual depreciation expense and year-end accumulated depreciation and book value over the life of the asset using the following methods. a. Straight-line method. b. Sum-of-the-years'-digits method. c. Double-declining-balance method. Straight-line Sum-of-the-years'-digits Double-declining balance a. Straight-Line Depreciation Method...

  • On July 1, 2020, Yorkton Company purchased for $640,000 equipment having an estimated useful life of...

    On July 1, 2020, Yorkton Company purchased for $640,000 equipment having an estimated useful life of eight years with an estimated residual value of $30,000. Depreciation is calculated to the nearest month. The company has a December 31 year-end. Required: Complete the following schedules: (Amount to be deducted should be indicated by a minus sign.) 2020 2021 2022 1. Double-declining-balance method: Equipment Less: Accumulated depreciation Year-end book value Depreciation expense for the year 2. Straight-line method: Equipment Less: Accumulated depreciation...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT