5.7 At 1 January 20X9 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 20X9.

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

What is the total charge for depreciation on cars, to the nearest pound, to be included in William’s statement of profit or loss for the year ended 31 December 20X9?

a) £13,204

b) £9,319

c) £5,707

d) £9,592