Hindberg is a car retailer.

On 1 April 2014, Hindberg sold a car to Latterly on the following terms:
The selling price of the car was $25,300.

Latterly paid $12,650 (half of the cost) on 1 April 2014 and would pay the remaining $12,650 on 31 March 2016 (two years after the sale).

Hindberg’s cost of capital is 10% per annum.

What is the total amount which Hindberg should credit to profit or loss in respect of this transaction in the year
ended 31 March 2015?

A     $23,105
B     $23,000
C     $20,909
D     $24,150