Depreciation method change lacks clear application details Steps:

• Note draft year 3 profit of $18,000 includes straight-line depreciation charge, with total accumulated depreciation of$6,000 at year-end.
• Straight-line implies equal annual charges, so year 3 depreciation is $2,000 (total$6,000 / 3 years).
• Changing to reducing balance at 25% for year 3 requires knowing if applied prospectively (25% on year-start NBV of $6,000 =$1,500) or retrospectively (restate prior depreciation, year 3 charge $1,406).
• No specification of application method (prospective per IAS 16 or otherwise), so revised year 3 charge and profit impact cannot be determined.

Why C is correct:

• Not enough information to compute revised depreciation or adjust profit; draft $18,000 stands unchanged.

Why the others are wrong:

• A. Assumes extra $2,000 depreciation charge, unsupported.
• B. Assumes arbitrary halving or miscalculation of NBV/cost, unsupported.
• D. Confuses profit with net book value or cost less total depreciation, irrelevant.

Final answer: C