On July 1, 2019, Bronson Co. purchased some equipment that initially cost $52,800. Additional costs included freight costs $300, non-refundable taxes $6,400, and installation $500. Estimated residual value is $2,000. The company uses a straight-line rate of 10%. Bronson's fiscal year end is June 30. Depreciation expense for the 2020 fiscal year end is

Depreciation Expense = $5800

Explanation:

As per the data given in the question,

Initial cost = $52,800

Freight cost = $300

Non-refundable tax = $6,400

Installation = $500

Estimated residual value = $2,000

Rate = 10%

So total cost of assets = $52,800 + $300 + $6,400 + $500

= $60,000

As per the following formula,

The straight line depreciation expense = (Cost - Residual value) * Straight line depreciation rate

= ($60,000 - $2,000) * 10%

=$58,000 * 10%

=$5,800