Sue bought a new machine. She wrote off its value at $40\%$ each year by using the reducing balance method. At the end of two years, its net book value had fallen to $3600. What was the machine's purchase price?
- A$7056
- B$9216
- C$10000
- D$22500
Accounting 9706 · AS & A Level · Accounting for non-current assets
Sue bought a new machine. She wrote off its value at $40\%$ each year by using the reducing balance method. At the end of two years, its net book value had fallen to $3600. What was the machine's purchase price?