A business purchased a new car at the start of October for $16,800 cash. The car has a useful life of 4 years and residual value of $2,400. The business has a 30 June year end. If the business uses the reducing balance method of depreciation, at the rate of 25% per year, what will the depreciation expense be at year end?

a.

$4 200

b.

$3 600

c.

$2 700

d.

$3 150

e.

None of the above