Victoria owns a gym. In her financial year to 31 August 2012 she buys a new exercise bike for £450. The date of purchase was 1 March 2012. Victoria aims to keep gym equipment for 3 years. After 3...

Victoria owns a gym. In her financial year to 31 August 2012 she buys a new exercise bike for £450. The date of purchase was 1 March 2012. Victoria aims to keep gym equipment for 3 years. After 3 years she finds that the equipment is usually well worn and worth very little. She advertises old equipment to her members, and would usually expect to receive about £30 for an old exercise bike.

Victoria charges depreciation in her accounts on the straight-line basis. What is the depreciation charge in respect of the new exercise bike in the year to 31 August 2012?

a) £70

b) £140

c) £75

d) £150.