A builder owns three cranes, particulars of which are stated on the right. The cranes are depreciated at 25% per annum using the reducing balance method, with time apportioning in the year of acquisition and disposal. Crane B was sold on 30 June year 6. The depreciation for year 6 would be:

(a) £21,563

(b) £23,750

(c) £25,000

(d) £31,563

Transcribed Image Text:

Crane ABC C Acquired on 1.4. Year 4 1.7. Year 5 1.9. Year 6 Cost £80,000 £40,000 £60,000