The following information relates to the non-current assets of a business that was formed three years ago.
In calculating the draft profit for year 3, depreciation has been consistently charged using the straight-line method.
Prior to finalising the accounts, the business decided to change the method of depreciation for year 3 to the reducing balance method at a rate of 25% per annum.
What was the revised profit for year 3?
1 )
＄16 000
2 )
＄17 500
＄18 500
4 )
＄19 000
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