Use the information below to answer questions .

Motor Vehicle Account as at 31st December 2001.

Debit:

Jan. 1, cost ................N1950 000

Dec.31, Addition ............ N400 000

Credit:

Jan. 1, Depreciation ........N1360 000

June 30, Sales proceeds...... N700 000

The vehicle sold was purchase on January 1, 1998 at a cost of N1,000 000 and had depreciation at 25% on cost.

Assuming that depreciation is charged on the addition of the year at the rate of 15% on reducing balance, what should be the net book value of the vehicle as at 31st December 2003?

• A N280,000
• B N289,000
• C N250,000
• D N340,000