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Eastern Rug Distributors Acquired a Computer for $ 7000 on 31

Question 9

Multiple Choice

Eastern Rug Distributors acquired a computer for $ 7000 on 31 December 2010.Calculate depreciation for the year ended 31 December 2012 using the diminishing-balance method at 20% p.a.Assume a nil residual value.


A) $1400
B) $700
C) $2800
D) $1120

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