Accounting 9706 · AS & A Level · Accounting for non-current assets

Accounting for non-current assets — practice question

A business acquired a vehicle for $23500 during the year ended 31 December 2012. It was then disposed of on 30 September 2015 for $3500. Depreciation was recorded at 20% per annum by the straight line method. In both the year of purchase and the year of disposal, depreciation for a complete year was charged. What was the profit or loss on disposal of the vehicle?

  • A$1200 loss
  • B$1200 profit
  • C$5900 loss
  • D$5900 profit

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI