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Question - Cheyenne Corp. purchased a machine on July 1, 2020, for $32,060. Cheyenne paid $220 in title fees and a legal fee of $300 related to the machine. In addition, Cheyenne paid $520 in shipping charges for delivery, and $500 to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 10 years, a total expected life of 12 years, a residual value of $5,400, and no salvage value. Cheyenne uses straight-line depreciation.
Calculate the 2020 depreciation expense if Cheyenne prepares financial statements in accordance with IFRS.
Calculate the 2020 depreciation expense if Cheyenne prepares financial statements in accordance with ASPE.
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