A new item of equipment costing $40000, and expected to have a residual value of $6000, was purchased at the start of the year on 1 January. On that same date, the business paid the following amounts for the equipment: - delivery $5000 - installation $7000 - 8-year maintenance contract $8000 This equipment is estimated to have a useful life of 8 years. The business applies the straight-line method of depreciation. What would be the carrying amount of this item at the end of the year on 31 December?
- A$35750
- B$46250
- C$52500
- D$53250