On 1 January, Zac recorded the cost of repairing equipment, $420$, in the equipment account. At 31 December, depreciation at $20\%$ per annum, applied by the straight-line method, was charged against the balance in the equipment account. What effect did this have overall on the book value of the equipment on 31 December?
- A$84$ understated
- B$336$ overstated
- C$420$ overstated
- D$504$ understated