Quastions 15 to 20 refer to the following example. BMesky, a speciaist widget rotailer started business on 1 January 2021, in the first year, the businest made the following transactions. 1. The owners placed {40,000 of therr own funds into tho business bank account: 2. The businass used tho bank account fo boy shop fotures and fitings which cost f15,000 3. The business used the bank account to buy new iwentory for 9.500. 4. The business bought further inventory of E9,000 on creds. 5. The shop sold $8,000 of iss inveniory for E16,000 to custamers through the whop for cash. 6. Also, the business sold goods that cost 5.000 to another business for 7.000 an credt 7. The business paid 6,000 in rent. This covered the 18 months to 30 June 2022 . 8. The business calculated depreciation on the straight-ine method at 10 per cent per annum 9. Athough the bii had not been roceived, the owners estinated that the elactricity would be f2,500 for the year: 10. The owness wehdrew es, 000 for their own use Ouestion 20: If depreciation had been chargod on the fixed ine basis at 20 per cent per yoar, what would be the etfect on profit and 35504s? a Profis would be greater and the value of fixed assets higher. b. Profit would be less and the vakie of foud asseds higher c. Profit would bo loss and the value of foed assets less: d. Profit would be greater and the value of foxed assets higher