Crows Ltd purchased a photocopier on 1 July 2007 for $30,000.It was estimated that it would have a useful life of 3 years and produce 5,000,000 copies over its life.The asset's residual value is estimated at $3,000.Other similar assets are depreciated on a reducing balance method is at 40% rate.Which of the following statement is correct for year ending 30 June 2008?
A) If the straight-line method is used, depreciation expense is $10 000.
B) If the reducing balance method is used, depreciation expense is $10 800.
C) If the sum of digits method is used, depreciation expense is $13, 500.
D) If the reducing balance method is used, depreciation expense is $10 800 and If the sum of digits method is used, depreciation expense is $13, 500.
E) None of the given answers.
Correct Answer:
Verified
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