B Ltd purchased a machine for $96 000 on 1 July 2011.The machine was expected to have a useful life of 4 years.The financial year ends on 30 June.The straight-line method of depreciation is employed.What was the depreciation expense for year ended 30 June 2012?
A) $31 500
B) $27 750
C) $25 500
D) $24 000.

Question

Quizplus · Accepted Answer

The straight-line depreciation method divides the cost of the asset evenly over its useful life. The annual depreciation expense is calculated as $96,000 / 4 years = $24,000.

B Ltd Purchased a Machine for $96 000 on 1