2. Assume you are computing the depreciation expense of a piece of equipment for the fiscal year ended 30 June 2023 (FY 2022/2023) for XYZ Inc. The equipment was acquired on 1 July 2022 with a purchasing price of $150,000, the equipment is expected to have a useful life of eight years with a salvage value of $5,000. You also gather the following information: Total plant capacity of the equipment per year 15,000 units Production in FY 2022/2023 10,000 units Total expected production of the equipment during its useful life Freight and installation fee 100,000 units $5000 Staff training fee for equipment maintenance $5000 Use Straight-Line method, Units of Production method and Double-Declining Balance method to calculate the depreciation expense for the fiscal year ended 30 June 2023. Note: fiscal year is assumed to start on 1 July 2022 and end on 30 June 2023
2. Assume you are computing the depreciation expense of a piece of equipment for the fiscal year ended 30 June 2023 (FY 2022/2023) for XYZ Inc. The equipment was acquired on 1 July 2022 with a purchasing price of $150,000, the equipment is expected to have a useful life of eight years with a salvage value of $5,000. You also gather the following information: Total plant capacity of the equipment per year 15,000 units Production in FY 2022/2023 10,000 units Total expected production of the equipment during its useful life Freight and installation fee 100,000 units $5000 Staff training fee for equipment maintenance $5000 Use Straight-Line method, Units of Production method and Double-Declining Balance method to calculate the depreciation expense for the fiscal year ended 30 June 2023. Note: fiscal year is assumed to start on 1 July 2022 and end on 30 June 2023
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A8
Transcribed Image Text:2. Assume you are computing the depreciation expense of a piece of equipment for the fiscal
year ended 30 June 2023 (FY 2022/2023) for XYZ Inc. The equipment was acquired on 1 July
2022 with a purchasing price of $150,000, the equipment is expected to have a useful life of
eight years with a salvage value of $5,000. You also gather the following information:
Total plant capacity of the equipment per year
15,000 units
Production in FY 2022/2023
10,000 units
Total expected production of the equipment during its useful life
Freight and installation fee
100,000 units
$5000
Staff training fee for equipment maintenance
$5000
Use Straight-Line method, Units of Production method and Double-Declining Balance method
to calculate the depreciation expense for the fiscal year ended 30 June 2023.
Note: fiscal year is assumed to start on 1 July 2022 and end on 30 June 2023
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