BUSINESS, FUR1 2004 VCAA 8 MC

A machine is purchased for `$15\ 000`. Using the reducing balance method of depreciation, its book value after six years will be `$5000`.
The graph that best represents the value of the machine at the end of each year over the six-year period is

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`A`

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`text(As a reducing balance method of depreciation)`

`text(is used, book value will decrease every year)`

`text(and it will decrease by the according % of the)`

`text(value each year.)`

`text{(Depreciates less in terms of cost each year.)}`

`=> A`