Dagmar Spent £11 700 on 1 February 20X2 in Acquiring

Multiple Choice

Dagmar spent £11 700 on 1 February 20X2 in acquiring a new car for use in her business.The basic price of the car was £11 000, but she spent an additional £700 on air conditioning for it.Dagmar's policy is to depreciate on the reducing balance basis at a rate of 25%. What was the charge to depreciation in respect of this car for Dagmar's financial year ended 31 January 20X4 (to the nearest £) ?

A) £6581
B) £1645
C) £2194
D) £2063