A Motor Vehicle Was Purchased for $25,000, Depreciated Using the Reducing-Balance

Multiple Choice

A motor vehicle was purchased for $25,000, depreciated using the reducing-balance method for 3 years at 20% p.a. and was then sold for a price that was $1,600 more than the carrying amount of the vehicle. The cash received on the sale of the motor vehicle was:

A) $12,800.
B) $14,400.
C) $11,200.
D) $11,600.