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Pronghorn Corp

Accounting

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Pronghorn Corp. purchased a machine on July 1, 2020, for $29,590. Pronghorn paid $270 in title fees and a legal fee of $250 related to the machine. In addition, Pronghorn paid $590 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 $6,600, and no salvage value. Pronghorn uses straight-line depreciation.

1) Calculate the 2020 depreciation expense if Pronghorn prepares financial statements in accordance with IFRS.

2) Calculate the 2020 depreciation expense if Pronghorn prepares financial statements in accordance with ASPE.