Mighty Models Acquired a Machine for $20 000 on 31

question 14

Multiple Choice

Mighty Models acquired a machine for $20 000 on 31 December 2018. Calculate depreciation for the year ended 31 December 2020 using the diminishing-balance method at 12% p.a. Assume a nil residual value.

• A) $1800
• B) $2000
• C) $2112
• D) $2400

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Definitions:

Unpaid Rent

The amount of money that a tenant owes to a landlord for occupying property or space that has not been paid by the due date.

Surrender Agreement

A legal document outlining the terms under which one party agrees to surrender rights, property, or interest to another party.

Prematurely Terminates

Refers to the ending of an agreement or contractual obligation before the agreed upon or expected end date, often subject to certain conditions or penalties.

Mutual Agreement

A common understanding or accord reached between parties, where all individuals involved agree to specified terms or conditions.