Concord Corp
Subject:AccountingPrice: Bought3
Concord Corp. acquired a property on September 15, 2020, for $240,000,
paying $3,100 in transfer taxes and a $2,300 real estate fee. Based on the provincial assessment information, 85% of the property's value was related to the building and 15% to the land. It is estimated that the building, with proper maintenance, will last for 20 years, at which time it will be torn down and have zero salvage value. Concord, however, expects to use it for 10 years only, as it is not expected to suit the company's purposes after that. The company should be able to sell the property for $177,000 at that time, with $46,000 of this amount being for the land. Concord prepares financial statements in accordance with IFRS. Depreciation expense should be calculated to the nearest half month.
Assuming 31 December as a year end.
Find:
1) Cost of the building
2) Depreciable amount
3) Building's useful life
4) Depreciation expense for 2020 (straight line)
5) Depreciation expense 2020 ( straight line with ASPE)
6) Depreciation expense for 2021 ( double declining)
7) Building's carrying amount (Assuming double declining method)
