On 30 September 2019, Skip Ltd acquired a vehicle at a cost of $26,000, with a useful life 4 years, and no residual value. Skip Ltd depreciates vehicles using a straight line method (end of year 30 June).

On 30 September 2021, Skip Ltd incurred $5,000 in costs to replace parts, extending the vehicle's useful life by 3 years, and giving it a residual value of $2,000.

On 1 October 2021 the depreciable amount of the vehicle is:

Select one:

a.

$16,000

b.

$3,200

c.

$18,000

d.

$29,000