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

Accounting for non-current assets — practice question

A company bought an asset for $100000. Its useful life was five years and its estimated residual value was $20000. The company applies straight-line depreciation. At the end of the five-year period, the asset was sold for $5000. What is the combined impact on year five profits of both the depreciation charge and the sale of the asset?

  • A$1000
  • B$15000
  • C$16000
  • D$31000

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