Insufficient information to calculate depreciation on old machine

Steps:

• The new machine costs $20,000 and is acquired on the first day, so full-year depreciation at 20$20,000 × 20% = $4,000.
• The old machine has book value $8,000 at start but is exchanged on the first day, so no time held for depreciation.
• Depreciation method (straight-line or reducing balance) is unspecified; for straight-line, annual amount for old machine requires original cost and life (missing).
• Loss on disposal ($8,000 book value -$4,000 allowance = $4,000) is not depreciation.

Why D is correct:

• D may assume erroneous inclusion of old machine depreciation ($1,500?) + new ($4,000), but calculation unsupported.

Why the others are wrong:

• A: Only old machine depreciation, ignores new and timing.
• B: Possible miscalculation of net cost ($12,500?) × 20%, ignores standard treatment.
• C: Correct for new machine only, but problem ambiguous on old.

Not enough information. Final answer: D