Final answer:
Calculating depreciation for a period less than a year requires proration of the annual depreciation rate. For a 20% annual depreciation on $4500, the amount for approximately 10.5 months is less than the full year's $900, thus making options A and B incorrect, while C is correct for the full year, and D incorrect for the period.
Step-by-step explanation:
The student's question deals with calculating depreciation which is a concept in accounting, part of the business field. Depreciation here is calculated at a rate of 20% per annum on the initial value of $4500 starting from August 18th to June 30th of the following year. However, because the period in question does not cover a full year, the depreciation expense needs to be pro-rated.
The full annual depreciation would be 20% of $4500, which is $900. To find the depreciation for the specific period (August 18th to June 30th), you need to calculate the number of months and days in this period, which is around 10.5 months or approximately 10 and 1/2 months. The actual depreciation expense for this period would be $900 multiplied by (10.5/12), which equals to $787.5, rounded typically to $787 or $788.
Therefore, of the given options, both A and B are incorrect as they represent a full year's depreciation, while option C is accurate because it represents the book value after a full year's depreciation ($4500 - $900), and option D is incorrect as the depreciation should be proportionate to the period of time. The correct depreciation for less than the full year would be less than $900.