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:

Mental Capacity

The ability of an individual to make informed decisions and understand the consequences of those decisions.

Intoxicated

A condition of being under the influence of alcohol or drugs to a degree that impairs a person's physical and cognitive functions.

Void

A void agreement or contract has no legal effect, thus it's as if it never existed due to illegality or impossibility.

Standard of Living

The degree of wealth, comfort, material goods, and necessities available to a person, community, or nation.