A company which makes up its financial statements annually to 31 December, provides for depreciation of its machinery at the rate of 12 per cent per annum using the reducing balance method. On 31 December 2015, the machinery consisted of three items purchased as shown:
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£
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On 1 January 2013 Machine A
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Cost 4,000
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On 1 September 2014 Machine B
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Cost 7,000
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On 1 May 2015 Machine C
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Cost 2,000
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