A company bought a machine for $50000$. Its estimated residual value after five years was $5000$. At the end of its five-year working life, the machine was sold for $6000$. Which statement is correct?
- ADepreciation charges over the five year period have reduced profits by a total of $50000$.
- BThe annual depreciation charge was overstated by $200$.
- CThe company profits in years one to four need to be adjusted.
- DThe depreciation method used by the company has no effect on profits.