On 1 January 2014 Image Plus Ltd Acquired Electronic Equipment

question 38

Multiple Choice

On 1 January 2014 Image Plus Ltd acquired electronic equipment for $18 000, net of GST. It is estimated it will have no residual value. If depreciation is provided at 10% p.a. on the diminishing-balance basis, the depreciation charge for the year ended 31 December 2016 is:

• A) $1312.
• B) $1458.
• C) $2700.
• D) $3000.

---

Definitions:

Voltage Drop

The reduction in electrical voltage as it passes through a component or conductor, due to resistance or impedance in the circuit.

Low Current Draw

The condition of an electrical device consuming a relatively small amount of electrical current.

Viscosity

The sheer resistance of a liquid often used to mean oil thickness or resistance to flow.

Ground Circuit

An electrical circuit that uses the earth as a part of its conductive path, enhancing safety by preventing electric shock.