Adam’s financial year finishes on 31 December 2017. At 1 January 2017, the machinery had a net book value of $20000. On 30 June 2017, he bought a new machine for $6000. He paid 50% of the cost in cash and the remainder by part exchange of an old machine, whose net book value on that date was $2500. He charges depreciation on machinery at 20% per annum on the net book value, using a time basis. What is the net book value of the machinery shown in the statement of financial position on 31 December 2017?
- A$18400
- B$18800
- C$19150
- D$20800