Calculate the annual depreciation amount

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Sarasota Manufacturing purchased a machine on January 1, 2020 for use in its factory. Sarasota 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 2020, the machine produced 47,400 units, and produced 67,800 in 2021. The machine was subject to a 20% CCA rate, and Sarasota's year-end was December 31.

Question 1: Calculate the annual depreciation amount for 2020 and 2021 under the straight-line method.

Question 2: Calculate the annual depreciation amount for 2020 and 2021 under the activity method

Question 3: Calculate the annual depreciation amount for 2020 and 2021 under the double-declining balance method.

Question 4: Calculate the annual depreciation amount for 2020 and 2021 under the capital cost allowance method.

Reference no: EM132496319

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