On 1 July 2010 A Ltd entered into a leasing arrangement with B Ltd. The lease agreement included the following provisions:

• Lease term 4 years
• Annual payment, in advance on 1 July each year $10 000
• Residual value at end of the lease term $2 000
• Residual guaranteed by the lessee $2 000
• Amount of residual value guarantee expected to be payable by the lessee at the end of the lease term is $200
• Interest rate implicit in the lease is 7%
• The lease is a finance lease
• Expected useful life of the machine 6 years
• Residual value at end of useful life is $500
• Initial direct costs of the lessee is $1 000
• Initial direct costs of the lessor are $1 500
• The machine will be returned to B Ltd at the end of the lease term

The amount recognised by A Ltd as depreciation expense for the year ended 30 June 2011 would be:

Group of answer choices

$9,299

$9,349

$9,099

$6,149