Samoosse Traders (registered for VAT) is a newly founded business trading in safety products and equipment. The accounting policies of Samoosse Traders is as follows:

1. The perpetual inventory system is applied

2. Vehicles is depreciated over 6 years using the straight-line method

3. Furniture is depreciated at 10% per annum using the reducing balance method

On 1 August 2020, Samoosse Traders purchased new office furniture to the amount of R17 250 (VAT inclusive at 15%).

What will the accumulated depreciation on the new furniture be for the financial year ending on 28 February 2022?

Select one:

a.

R2 630,63

b.

R2 850,00

c.

R2 287,50

d.

R3 277,50