Reference no: EM132711624
On January 1, 2015, Indigo Corporation, a small manufacturer of machine tools, acquired new industrial equipment for $1,300,000. The new equipment had a useful life of five years and the residual value was estimated to be $59,000. Indigo estimates that the new equipment can produce 14,000 machine tools in its first year. It estimates that production will decline by 1,000 units per year over the equipment's remaining useful life.
The following depreciation methods may be used: (1) straight-line, (2) double-declining-balance, and (3) unit of production. For tax purposes, the CCA class is Class 10-30%.
Problem (a) show a schedule showing the amount of accumulated depreciation at December 31, 2017, under straight-line method, double-declining balance method and units-of-output method. (Round depreciation per unit to 0 decimal places, e.g. 15 and final answer to 0 decimal places, e.g. 1,575.)
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