ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 86

Salvage value
$7,316
$7,080
$11,800
$11,800
Depreciation method
Sum-of-the-years'-digits
Activity
Straight-line
Double-declining
balance
Accum. depr through 2014*
$73,632
$83,072
$35,400
$37,760
*In the year an asset is purchased, Eshkol, Inc. does not record any
depreciation expense on the asset.
In the year an asset is retired or traded in, Eshkol, Inc. takes a full
year’s depreciation on the asset.
21) Mandall Company constructed a warehouse for $280,000 on
January 2, 2014. Mandall estimates that the warehouse has a useful
life of 20 years and no residual value. Construction records indicate
that $40,000 of the cost of the warehouse relates to its heating,
ventilation, and air conditioning (HVAC) system, which has an
estimated useful life of only 10 years. What is the first year of
depreciation expense using straight-line component depreciation
under IFRS?
22) Francisco Corporation is constructing a new building at a total
initial cost of $10,000,000. The building is expected to have a useful
life of 50 years with no residual value. The building’s finished
surfaces (e.g., roof cover and floor cover) are 5% of this cost and
have a useful life of 20 years. Building services systems (e.g., electric,
heating, and plumbing) are 20% of the cost and have a useful life of
25 years. The depreciation in the first year using component
depreciation, assuming straight-line depreciation with no residual
value, is:
23) Which of the following statements is correct?