The motor vehicles at cost account had a balance of $90000 at the beginning of the year on 1 January.
On 1 September in the same year, the following transactions took place.
1 A motor vehicle was disposed of. The vehicle had been purchased in the previous year for $21000.
2 A new motor vehicle was purchased at a cost of $24000.
Depreciation is calculated at 20% using the straight-line method. Depreciation is charged on a month-by-month basis for each month the motor vehicle is owned.
What was the depreciation charge for the year ended 31 December?
1 )
$15400
$18200
3 )
$18600
4 )
$22400
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