At the start of the year, on 1 January, Zac spent $420 on repairing equipment. He recorded this figure in the equipment account. By the close of the year, on 31 December, depreciation at 20% per annum was applied to the balance in the equipment account, using the straight-line method. What was the total impact on the carrying value of the equipment on 31 December?
- A$84 understated
- B$336 overstated
- C$420 overstated
- D$504 understated