Wally’s business owns several machines which he depreciates on the reducing balance basis at the rate of 10% per annum. His statement of financial position at 31 March 2012 showed the following...

Wally’s business owns several machines which he depreciates on the reducing balance basis at the rate of 10% per annum.

His statement of financial position at 31 March 2012 showed the following balances in respect of machines:

On 17th October 2012 he bought a new machine for £14 800. There were no other additions or disposals of machines in the year. Depreciation is charged in respect of each complete month of ownership. What is the charge for depreciation on machines (to the nearest £) to be included in Wally’s income statement for the year ending 31 March 2013?

a) £28 899

b) £18 122

c) £18 739

d) £19 602