Sarah is a builder who purchased earthmoving equipment costing $75 000 for her business on 1 November of the previous tax year. She considered that it would have an effective life of 5 years. What amount can Sarah claim for depreciation (to the nearest $) in the current tax year ended 30 June assuming that she used the diminishing value method of depreciation? Hint - you must first calculate depreciation for the previous tax year.

Select one:

1. $19 890.

2. $22 044.

3. $13 011.

4. $18 000

5. $22 500.