Multiple Choice
On the first day of the year Mayo Resources purchased a forklift truck for $12 000 which is to be depreciated by 25% a year. At the end of the first year:
A) depreciation in the income statement is $3000 and the carrying value of the forklift in the balance sheet is $12 000.
B) depreciation in the income statement is $3000 and the carrying value of the forklift in the balance sheet is $15 000.
C) depreciation in the income statement is $3000 and the carrying value of the forklift in the balance sheet is $9000.
D) depreciation in the income statement is $0 and the carrying value of the forklift in the balance sheet is $12 000.
Correct Answer:
Verified
Correct Answer:
Verified
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