Reducing balance depreciation for one year Steps:

• Net book value on 1 May 2024: $35,000 cost -$12,600 accumulated depreciation = $22,400
• Annual depreciation charge: 20% × $22,400 =$4,480
• Closing accumulated depreciation on 30 April 2025: $12,600 +$4,480 = $17,080 Why A is correct:
• Reducing balance method charges depreciation as a fixed percentage of the opening net book value each period, per accounting standards like IAS 16. Why the others are wrong:
• B: Closing net book value ($22,400 × 80$17,920), not accumulated depreciation
• C: Opening net book value ($22,400), confuses NBV with provision balance
• D: Possible miscalculation of two years' NBV on original cost ($35,000 × 80$28,000, rounded up)

Final answer: A