Midlothian Ltd Uses Composite-Rate Depreciation Rate at 12

question 19

Multiple Choice

Midlothian Ltd uses composite-rate depreciation rate at 12.5% p.a. for its office equipment. The office equipment account had a $17 000 balance of the beginning of the period and a $33 000 balance at the end of the accounting period. The annual charge for depreciation is:

• A) $2062.
• B) $4125.
• C) $3125.
• D) $6250.

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Definitions:

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