4) Lion Itd sells t-shirts with customised prints. The business incurred the following costs in relation to 1,000t-shirts that were recently acquired: Required a. Determine the cost of inventory of t-shirts. b. Due to recent weak demand, Lion Ltd believes that it can sell these 1,000t-shirts for only $15,000 after it incurs additional advertising cost of $1,000. Determine the value of the inventory to be reported in the balance sheet. c. Lion Ltd purchased a piece of equipment on 1 January 2021 at a cost of $170,000. Lion Ltd also incurred transportation costs of $10,000 to bring the equipment to the initial location of use. The equipment is expected to be used for 40,000 working hours during its 8-year life and an estimated residual value of $20000 at the end. Each year $1000 is spent on the maintenance of the equipment. The entity's reporting period ends on 30 June. For the units of production method, the equipment usage was 3,000 hours for 2021 and 9,000 hours for 2022 . Calculate the depreciation expense using the straight-line and units of production methods for 2021 and 2022