On the first day of the year Tan Traders purchased a forklift truck for $12 000 which is to be depreciated by 25% a year.At the end of the first year:

Question

Quizplus · Accepted Answer

Since the forklift is being depreciated by 25% a year, the depreciation for the first year would be 25% of the purchase price, which is $3,000. This means that the carrying value of the forklift at the end of the first year would be the purchase price minus the depreciation, which is $9,000 ($12,000 - $3,000). Therefore, choice C is the correct answer.

On the First Day of the Year Tan Traders Purchased