Kingbird Manufacturing purchased a machine on January 1, 2023 for use in its factory. Kingbird paid $734,000 for the machine and estimated that it had a useful life of 10 years, at the end of which time the machine was expected to have a residual value of $30,000. During its life, the machine was expected to produce 320,000 units. During 2023, the machine produced 33,700 units, and produced 48,600 in 2024. The machine was subject to a 20% CCA rate, and Kingbird's year-end was December 31. The machine is eligible for the Accelerated Investment Incentive.

Kingbird Manufacturing purchased a machine on January 1, 2023 for use in its factory. Kingbird paid $734,000 for the machine and estimated that it had a useful life of 10 years, at the end of which time the machine was expected to have a residual value of $30,000. During its life, the machine was expected to produce 320,000 units. During 2023, the machine produced 33,700 units, and produced 48,600 in 2024. The machine was subject to a 20% CCA rate, and Kingbird's year-end was December 31. The machine is eligible for the Accelerated Investment Incentive.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 6RE

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