5.7 At 1 January 2012 William had the following balances in his books related to the non-current asset of cars:

Cars at cost £38 370 Less: accumulated depreciation (15 540)

Carrying amount 22 830 He acquired a new car on the same date for £14 447. No other cars are bought, or sold, during the rest of the accounting period which ends on 31 December 2012.

William depreciates cars on the reducing balance basis at 25% per year.

What is the total charge for depreciation on cars, to the nearest £, to be included in William’s income statement for the year ending 31 December 2012?

a) £13 204

b) £9 319

c) £5 707

d) £9 592.