S purchased equipment for 80,000 on 1 July year 1. The company’s accounting year end is 31 December. It is S’s policy to charge a full year’s depreciation in the year of purchase. S depreciates its equipment on the reducing balance basis at 25% per annum. What is the net book value of the equipment at 31 December year 4?
A. Nil
B. 25,312
C. 29,531
D. 33,750
