Victor adopts the straight-line method of depreciation in his accounts. He purchases a new machine on 1 June 2012 for £ XXXXXXXXXXHe expects to keep the machine for approximately 6 years, at the end...

Victor adopts the straight-line method of depreciation in his accounts. He purchases a new machine on 1 June 2012 for £13 750. He expects to keep the machine for approximately 6 years, at the end of which time it will have a scrap value of about £250. Victor prepares accounts to 31 December each year.

What is the first year’s depreciation charge, assuming that Victor charges a full year’s depreciation in the year of acquisition of non-current assets and none in the year of disposal?

a) £1 125

b) £2 250

c) £2 292

d) £2 333