• On 30 June 2013 Chris purchased from Megan an item of equipment for $40,000. The equipment originally cost Megan $90,000. As at 30 June 2013, the equipment had a carrying amount of $28,000, a remaining useful life of 5 years and a residual value of zero. Megan depreciated the equipment using the straight-line depreciation method at $9,000 p.a. Chris depreciates the equipment also using the straight-line depreciation method.