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?
1 )
$\$ 6000$
$\$ 9200\;$
3 )
$\$ 11000$
4 )
$\$ 12800$
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