Bridgeport Manufacturing purchased a machine on January 1, 2023 for use in its factory. Bridgeport paid $536,000 for the machine and estimated that it had a useful life of 10 years, at the end of which time the machine was expected to have a residual value of $30,000. During its life, the machine was expected to produce 440,000 units. During 2023, the machine produced 47,400 units, and produced 67,800 in 2024. The machine was subject to a 20% CCA rate, and Bridgeport's year-end was December 31. The machine is eligible for the Accelerated Investment Incentive. (a) Calculate the annual depreciation amount for 2023 and 2024 using the straight-line method. Annual depreciation amount $ 2023 $ 2024
Bridgeport Manufacturing purchased a machine on January 1, 2023 for use in its factory. Bridgeport paid $536,000 for the machine and estimated that it had a useful life of 10 years, at the end of which time the machine was expected to have a residual value of $30,000. During its life, the machine was expected to produce 440,000 units. During 2023, the machine produced 47,400 units, and produced 67,800 in 2024. The machine was subject to a 20% CCA rate, and Bridgeport's year-end was December 31. The machine is eligible for the Accelerated Investment Incentive. (a) Calculate the annual depreciation amount for 2023 and 2024 using the straight-line method. Annual depreciation amount $ 2023 $ 2024
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4EB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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