At 1 January 20X3 William has the following balances in his books related to the fixed asset of cars:

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

Net book value 22 830 He acquires 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 20X3.

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 profit and loss account for the year ending 31 December 20X3?

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Cd) ast O15972: