Example 2: Taxi Cabs Ltd buys a new car for use in its business for 30,000. It is estimated that this vehicle will be used within the business for 10 years after which time its residual value will be f2,000. Calculate the accounting entries for inclusion in the financial statements for the second year if depreciation is charged using reducing balance method. (depreciation charge is 23.72% ) A. 2,000 B. 5,428 C. 7,117 D. 3,000