Adam's accounting year finishes on 31 December. At the start of the year, on 1 January, the carrying value of machinery stood at $20 000. In the course of the year, on 30 June, he bought a new machine costing $6000. He settled 50% of the cost in cash and the remaining amount by part exchange of an old machine with a carrying value of $2500 on that date. He charges depreciation on machinery at 20% per annum, based on carrying value and using a time basis. What carrying value for the machinery should appear in the statement of financial position at the end of the year on 31 December?
- A$18 000
- B$18 800
- C$19 150
- D$20 800