Contract number 724 commenced on 1 May and plant with a book value of $600,000 was delivered to the site from central stores. On 1 October further plant was delivered, with a book value of $48,000.

Company policy is to depreciate plant at a rate of 25% of the book value each year.

The book value of the plant on site as at 31 December is A $103,000 B $486,000 C $545,000 D $648,000