Scot Ltd Uses a Composite-Rate Depreciation Rate of 8% P

question 53

Multiple Choice

Scot Ltd uses a composite-rate depreciation rate of 8% p.a. for its office equipment. The office equipment account had a balance of $15 000 at the beginning of the period and a balance of $28 000 at the end of the accounting period. The annual depreciation charge for the period is:

• A) $1 040
• B) $1 200
• C) $1 720
• D) $2 240

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Definitions:

Medical Practice

The profession or activity of providing care to patients, involving diagnosis, treatment, and prevention of diseases.

Filing Limit

The maximum time period allowed after an event within which legal proceedings may be initiated or claims must be submitted.

Insurance Company

A financial institution that provides coverage against certain risks in exchange for premium payments.

Patient Liability

The portion of healthcare costs that a patient is personally responsible for, including copayments, deductibles, and any services not covered by insurance.