1. Assume you are computing the depreciation expense of a piece of equipment for the fiscal year ended 30 June 2022 (FY 2021/2022) for ABC Inc. The equipment was acquired on 1 July 2021 with a purchasing price of 5 million, the equipment is expected to have a useful life of five years without any salvage value. You also gather the following information:

Total plant capacity of the equipment per year	650,000 units
Production in FY 2021/2022	450,000 units
Total expected production of the equipment during its useful life	1,500,000 units

Use Straight-Line method, Units of Production method and Double-Declining Balance methods to calculate the depreciation expense for the fiscal year ended 30 June 2022.

Answer rating: 100% (QA)

To calculate the depreciation expense for the fiscal year ended 30 June 2022 using the StraightLine method Units of Production method and DoubleDeclin... View the full answer