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For that machine, 30 000 units in a year gives a depreciation charge of

  • A.3000
  • B.12 000
  • C.16 000
  • D.24 000

Answer: B

Correct answer: 12 000

\[ 30\,000 \times 0.40 = 12\,000. \] Had the machine stood idle the charge would have been nothing, which is the essential difference from straight line and the reason the method suits equipment whose workload varies from year to year.

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