A Machine Was Purchased on 3 January 2015 for $56

question 22

Multiple Choice

A machine was purchased on 3 January 2015 for $56 000, net of GST. The machine had an estimated residual value of $14 000 and an estimated useful life of 5 years. Depreciation expense for the year ended 31 December 2015, using sum-of-the-years'- digits method, is:

• A) $16 000.
• B) $19 200.
• C) $14 000.
• D) $8400.