On 1 July, Gumi Company Purchased Equipment at a Cost

On 1 July, Gumi Company purchased equipment at a cost of $22 000. The equipment has an estimated residual value of $3000 and is being depreciated over an estimated useful life of eight years under the reducing-balance method of depreciation, at a rate equal to one-and-a-half times the straight-line depreciation rate. For the six months ended 31 December, Gumi Company had recorded one-half year's depreciation. One full year later, what would be the depreciation expense (rounded to the nearest dollar) on the equipment for the year and what is the written-down book value after this depreciation expense has been charged?

A) Depreciation expense $2063, written-down book value $19 937
B) Depreciation expense $3158, written-down book value $18 842
C) Depreciation expense $3738, written-down book value $16 199
D) Depreciation expense $5791, written-down book value $14 146