On January 01, 2019, the AI Wadi Company purchased machinery for OR 45,000. The estimated useful life of the machinery is 8 years and the estimated residual value is OR 5,000. Al Afiya's financial...

On January 01, 2019, the AI Wadi Company purchased machinery for OR 45,000. The estimated useful life of the machinery is 8 years and the estimated residual value is OR 5,000. Al Afiya's financial year ends on December 31. The machine is expected to produce 120,000 units during its life. Using the double-declining balance method, depreciation for 2020 would be: Round all computations to the nearest Riyal.

Select one:

O a. 8,438

O b. 8,750.

O c. 7,500.

O d. 7,188.