A-LevelAccountingAccounting for non-current assets9706/12 · May/June 2021 · Q41 Mark
Two years ago a business purchased two machines costing $25000 each. During the third year one of them with a net book value of $16000 was sold. A new machine costing $30000 was purchased. Depreciation is charged at 20% per annum using the reducing balance method on all the assets owned at the end of the accounting period. What was the depreciation charge for the third year?
A$6000
B$9200
C$11000
D$12800
✓ Correct answer
B: $9200
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