On 1 January 2018 Kettle Ltd acquired a vehicle at a cost of $30,000, with a useful life of 6 years, and no residual value. Kettle Ltd depreciates vehicles using a straight line method (end of year 30 June).

On 1 January 2021 Kettle Ltd incurred $5,000 in costs to replace parts on the vehicle, extending its useful life by 2 years, and giving it a residual value of $2,000

On 2 January 2021, the depreciable amount of the vehicle is:

Select one:

a.

$18,000

b.

$20,000

c.

$33,000

d.

$36,000