Calculate depreciation using change in net book value Steps:

• Compute NBV of disposed vehicle: sale price - profit = $24,000 -$2,000 = $22,000.
• Calculate net addition before depreciation: opening NBV + purchases - disposed NBV = $398,000 +$195,000 - $22,000 =$571,000.
• Depreciation charge = net addition before depreciation - closing NBV = $571,000 -$480,000 = $91,000. Why C is correct:
• Depreciation equals the amount needed to reduce the pre-depreciation NBV to the reported closing NBV, per the fixed asset accounting equation: closing NBV = (opening NBV + additions - disposed NBV) - depreciation. Why the others are wrong:
• A/B: Likely from miscalculating disposed NBV as $16,000/$15,000 (e.g., arithmetic error in profit adjustment).
• D: From ignoring disposal entirely (additions - increase in NBV ≈ $195,000 -$92,000 + error = overstatement).

Final answer: C