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On January 1,20X1, Mighty Entity pays the fair value of $50,000 for a new piece of machinery with an estimated

useful life of 8 years. The machine has a drum that must be replaced every four years and costs $20,000 to replace. Continued operation of the machine requires an inspection every four years after purchase and the inspection cost is $4,000. Under IFRS, what is the depreciation expense for year 2?

Can someone help explain how to calculate the depreciation for the single year 2?

I have donethe work for this but confused on how you get a single year

Fair Value of Machinery Fair Value of Drum

$30,000 $20,000

Life 8 years 4 years

Depreciation for one year $3750 $5000

Total Depreciation $8750

If i am right with the work that i have above can someone help explain further how to calculate the answer for depcreciation for year 2.

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