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

Accounting for non-current assets — practice question

On 1 January 2015, a motor vehicle was bought for $\$12000$. Its estimated residual value was $\$7000$, and its expected life was 5 years. Depreciation was worked out month by month using the straight-line method. The vehicle was disposed of on 30 June 2017, resulting in a loss on disposal of $\$2560$. What amount was received as the sale proceeds?

  • A$\$3440$
  • B$\$4352$
  • C$\$6440$
  • D$\$6940$

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