Question

A business with a 30 june year end, acquired a piece of equipment on 1st October...

A business with a 30 june year end, acquired a piece of equipment on 1st October 2018 for $41,200. The equipment has residual value of $ 3000 and a useful life of 10 years. The business uses straight line depreciation. The entry to record depreciation charge for the year ended 30 June 2019 includes: Select one:

a. Debit Depreciation Expense $ 2775

b. Debit Depreciation Expense $2865

c. Debit Depreciation Expense $3820

d. Debit Depreciation Expense $ 4000

e. None of the above

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