Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Phoenix Corp. purchased Machine no 201 on May 1 2017 The following information relating to...

Phoenix Corp. purchased Machine no 201 on May 1 2017 The following information relating to Machine no 201 was gathered at the end

Phoenix Corp. purchased Machine no. 201 on May 1, 2017. The following information relating to Machine no. 201 was gathered at the end of May: Price ............................................................................. $85,000 Credit terms .................................................................. 2/10, n/30 Freight-in costs ................................................................... $800 Preparation and installation costs .............................................. $3,800 Labour costs during regular production operations ........................ $10,500 It was expected that the machine could be used for 10 years, after which the residual value would be zero. However, Phoenix intends to use the machine for only eight years, and expects to then be able to sell it for $1,500. The invoice for Machine no. 201 was paid on May 5, 2017. Phoenix has a December 31 year end. Depreciation expense should be calculated to the nearest half month. Phoenix follows IFRS for financial statement purposes. Instructions (a) Calculate the depreciation expense for the years indicated using the following methods. (Round to the nearest dollar.) 1. Straight-line method for the fiscal years ended December 31, 2017 and 2018 2. Double-declining-balance method for the fiscal years ended December 31, 2017 and 2018 *(b) Calculate the capital cost allowance for the 2017 and 2018 tax returns, assuming a CCA class with a rate of 25%. (c) The president of Phoeni

May 21 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions