Replicator Limited Acquired an Item of Plant with an Expected

question 22

Multiple Choice

Replicator Limited acquired an item of Plant with an expected useful life of 5 years. Expected total production output over this period was: Year 1, 35 000 units; Year 2, 35 000 units; Year 3, 18 000 units; Year 4, 12 000 units. The asset cost $ 100 000 and associated installation costs amounted to $20 000 and residual value is $5000. The amount of depreciation charged in the first year is:

• A) $40 250
• B) $42 000
• C) $35 000
• D) $33 250.