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Equipment Which Had a Carrying Amount at the End of the Financial

Question 41

Multiple Choice

Equipment which had a carrying amount at the end of the financial year 2018/19 of $18 000, was disposed of on 1 October 2019. Depreciation was calculated on the equipment at 20% per annum using the diminishing-balance method. What was the depreciation expense charged for the first 3 months of the financial year 2019/20, before the asset was sold?


A) $1800
B) $0
C) $3600
D) $900

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