Ironwood Sawmill Ltd. purchased equipment on January 1 for $…

Questions

Irоnwооd Sаwmill Ltd. purchаsed equipment on Jаnuary 1 for $500,000. Management estimated a useful life of 8 years and adopted a 20% declining-balance depreciation rate for financial reporting purposes under ASPE. The equipment is expected to have no material residual value. What is the depreciation expense for Year 1?