A business ends its financial year on 31 December. On 1 July in the current financial year, new production machinery was bought. The business uses the straight-line method to depreciate production machinery at 20% per annum. Depreciation is calculated for every month of ownership. The estimated residual value of the new production machinery is $20000. For the current financial year, depreciation charged on the new production machinery amounted to $8000. What was the cost of the new production machinery?
- A$40000
- B$60000
- C$80000
- D$100000