On 31 December 2016, a New Machine with a Useful

question 42

Multiple Choice

On 31 December 2016, a new machine with a useful life of 6 years and an estimated residual value of zero was purchased by a business at a cost of $36,000. The amount of depreciation expense charged for the year ended 31 December 2018, using the reducing-balance method at a rate of 30% per annum, is:

• A)$6,300.
• B)$7,560.
• C)$9,820.
• D)$1,800.

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