Question

Question 1 Cobalt Manufacturing purchased equipment and a delivery vehicle on January 1, 2019. The equipment cost $65,000 and has an estimated useful life of 8 years with a residual value of $9,000 The delivery vehicle cost $150,000 and has an estimated life of 4 years or 200,000 kilometres and a residual value of $14,000. The delivery truck is expected to be driven 35,000 and 40,000 kilometres in 2019 and 2020, respectively. Required 1. Cobalt has decided to depreciate the equipment using either the straight-line method or double declining method. Calculate depreciation for the equipment for 2019 and 2020 using the straight-line method AND the double declining method 2. Cobalt has decided to depreciate the delivery truck using the units-of-production method. Calculate depreciation for the delivery truck for 2019 and 2020. 2019 Depreciation D820 Depreciation Requirement #1 Equipment Straigh-line mehed Equipment Double Declining method Requirement Delivery Truck - Units-of-Production Question 2 Wedgewood Incorporated paid $550,000 for land and $40,000 to have the old building removed from the land. The company also had to pay $12,000 in back property taxes. The company paid $2,100,000 for construction of a new building, including design. Fencing cost, the company $200,000 and lighting around the outside of the building cost the company $150,000. The company paid $300,000 for a parking lot and signage cost $80,000 Required Determine the cost of the land, land improvements, and building