Abbas Runs a Wholesale Confectionery Business

Multiple Choice

Abbas runs a wholesale confectionery business.During 20X5 he installed a new computerized inventory system at a cost of £320 000.He decided to depreciate the system at 15% each year on the reducing balance basis, but because it did not come online until mid-20X5 he charged only half of the first year's depreciation in his accounts for the year ended 31 December 20X5. What was the carrying amount of the computerized inventory system at 31 December 20X6?

A) £231 200
B) £251 600
C) £53 400
D) £296 000