A business engaged in providing water supply to a community has incurred £280,000 on laying a network of underground pipes. During the current year it incurred £18,000 on replacing a few lines. In accordance with an asset management plan drawn up by an independent expert it should be spending £35,000 per year. Under the renewal accounting approved by FRS 15 the network should be reported at the year-end at:

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a £280,000 b £298,000 c с £263,000 d £297,000