A manufacturer supplied the information below. On 1 January 2022: machinery recorded at cost $20 000; provision for depreciation of machinery $7 200; loose tools shown at valuation $2 100. Machinery is depreciated at $20\%$ per annum by the reducing balance method. Extra loose tools were bought in August 2022 for $300. No depreciation is charged on loose tools purchased in the financial year. On 31 December 2022, loose tools that were more than 12 months old were valued at $1 850. What was the depreciation charge for the year ended 31 December 2022?
- AMachinery $2 560, Loose tools $250
- BMachinery $2 560, Loose tools $550
- CMachinery $4 000, Loose tools $250
- DMachinery $4 000, Loose tools $550