On 1 July 2009, Barba Limited acquired an item of equipment for $105 000 which it depreciated using the straight-line basis. The equipment had an estimated useful life of 10 years and its residual value was $15 000. The carrying amount of the equipment in the financial statements dated 30 June 2014 is:

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The depreciation expense per year is calculated as (Cost - Residual value) / Useful life = ($105,000 - $15,000) / 10 = $9,000 per year. Over 5 years (from 1 July 2009 to 30 June 2014), the total depreciation is $9,000 * 5 = $45,000. Therefore, the carrying amount on 30 June 2014 is Cost - Accumulated Depreciation = $105,000 - $45,000 = $60,000.

On 1 July 2009, Barba Limited Acquired an Item of Equipment