At 31 December 2021 a business had a non-current asset with a net book value of $\$ 18000$. It
had been purchased during the year ended 31 December 2020.
Depreciation is charged at a rate of 25% per annum using the reducing balance method. A full
year’s depreciation is charged in the year of purchase.
What was the original cost of the non-current asset?
1 )
$\$ 22500$
2 )
$\$ 24000$
3 )
$\$ 27000$
$\$ 32000$
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