Question

Concord Corporation purchased a new plant asset on April 1, 2020, at a cost of $822,000. It was estimated to have a useful life of 20 years and a residual value of $342,000, a physical life of 30 years, and a salvage value of $0. Concord’s accounting period is the calendar year. Concord prepares financial statements in accordance with IFRS.

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Calculate the depreciation for this asset for 2020 and 2021 using the straight-line method. (Round answers to 0 decimal places, e.g. 5,275.)

		Depreciation
2020		$enter a dollar amount
2021		$enter a dollar amount

eTextbook and Media

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Calculate the depreciation for this asset for 2020 and 2021 using the double-declining-balance method. (Round answers to 0 decimal places, e.g. 5,275.)

		Depreciation
2020		$enter a dollar amount
2021		$enter a dollar amount

eTextbook and Media

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Calculate the depreciation for this asset for 2020 and 2021 using the straight-line method and assuming Concord prepares financial statements in accordance with ASPE. (Do not round intermediate calculations and round answers to 0 decimal places, e.g. 5,275.)

		Depreciation
2020		$enter a dollar amount
2021		$enter a dollar amount

eTextbook and Media

• eTextbook

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Assume that additional information has been provided relating to the cost ($822,000). There are three components of the plant asset. Components 1, 2, and 3 have costs of $370,000, $248,000, and $204,000, respectively. The useful lives of components 1, 2, and 3 are 25, 20, and 30 years, respectively.

Determine straight-line depreciation expense for 2020 and 2021 for each component under IFRS if the residual value is $110,000 for component 1, $136,000 for component 2, and $96,000 for component 3. (Do not round intermediate calculations and round answers to 0 decimal places, e.g. 5,275.)

		Depreciation expense
		2020		2021
Component 1		$enter a dollar amount		$enter a dollar amount
Component 2		$enter a dollar amount		$enter a dollar amount
Component 3		$enter a dollar amount		$enter a dollar amount

Little lost on these bottom two parts.

Answer 1