A company’s accounting year ends on 31 December. On 1 January 2020, the company bought a motor vehicle and the following costs were incurred. 1. purchase price, $30000, of which one half was settled by cheque. The remaining amount was financed by a bank loan. Interest on the loan for the year ended 31 December 2020 amounted to $2500 2. delivery charge, $2000 3. cost of improving the engine, $4000 4. repair and maintenance expenses for three years, $5000 The motor vehicle was to be depreciated at $20\%$ per annum by the straight-line method. What is the depreciation charge for the year ended 31 December 2020?
- A$4200
- B$7200
- C$7700
- D$8200