Reducing Balance Depreciation Journal Entry for 2019 Steps:

• Cost on 1 Jan 2018: $8000.
• 2018 depreciation: 40% × $8000 =$3200; net book value: $8000 -$3200 = $4800.
• 2019 depreciation: 40% × $4800 =$1920.
• Journal entry: Debit depreciation expense (income statement) $1920; credit provision for depreciation$1920.

Why A is correct:

• Reducing balance method applies 40% to the net book value at year-start, yielding $1920 expense debited to the income statement per accounting standards.

Why the others are wrong:

• B: Uses incorrect $3200 (2018 amount) and omits expense debit.
• C: Correct amount but incomplete—credits only provision, ignoring expense recognition.
• D: Incorrect $3200 and incomplete entry.

Final answer: A