Paper 1 October/November 2021 Accounting (9706/11) A Level
Two years ago a business purchased two machines costing $\$ 25000$ each.
During the third year one of them with a net book value of $\$ 16000$ was sold. A new machine
costing $\$ 30000$ was purchased.
Depreciation is charged at 20% per annum using the reducing balance method on all the assets
owned at the end of the accounting period.
What was the depreciation charge for the third year?