On 1 July 2014 Johnny Walker bought a machine for $18,000. He depreciates machinery at a rate of 20% per annum on the reducing balance basis. Depreciation is charged on a pro- rata basis in the year an asset is purchased. His year-end is 31 October. Depreciation charge on the machine for the year to 31 October 2015 would be recorded as: Question 14Answer a. Dr Depreciation Expense $ 3 360 Cr Accumulated Depreciation $ 3 360 b. Cr Depreciation Expense $ 3 600 Cr Machinery $18 000 c. Dr Machinery $ 18 000 Cr Accumulated Depreciation $1 200 d. Dr Depreciation Expense $14 400 Dr Accumulated Depreciation $ 1 4 400