The inspection cost is 8000 the company uses the


On January 1, year 1, an entity acquires for $100,000 a new piece of machinery with an estimated useful life of 10 years. The machine has a drum that must be replaced every five years and costs $20,000 to replace. Continued operation of the machine requires an inspection every four years after purchase; the inspection cost is $8,000. The company uses the straight-line method of depreciation. Under IFRS, what is the depreciation expense for year 1?

Solution Preview :

Prepared by a verified Expert
Financial Accounting: The inspection cost is 8000 the company uses the
Reference No:- TGS02671924

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)