Additional Problem 3 (Part Level Submission) Pína Manufacturing purchased a mach

Question

Additional Problem 3 (Part Level Submission) Pína Manufacturing purchased a machine on August 1, 2017 for use in its factory. Pina paid $310,000 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 $26,000. During its life, the machine was expected to produce 189,000 units. During 2017, the machine produced 21,000 units, and produced 31,000 in 2018, The machine was subject to a 20% CCA rate, and Pina's year-end was December 31. Y (b) Calculate the annual depreciation amount for 2017 and 2018 under the activity method. (Round per unit value to 2 decimal places, e.g. 5.75 and final answers to 0 decimal places, e.g. 5,275.) 2017 2018 Depreclation amount $ LINK TO TEXT LINK TO TEXT

Explanation / Answer

b Per unit depreciation=(310000-26000)/189000= $1.50 Depreciation amount: 2017 31500 =21000*1.5 2018 46500 =31000*1.5

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