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

Accounting for non-current assets — practice question

Daphne purchases a non-current asset for $10000. Its estimated useful life is two years, and its scrap value is $2000. She is deciding whether to depreciate it by the straight-line method or to apply the reducing balance method at a rate of 60% per annum. Which statements are correct?

  • A1 and 3
  • B1 and 4
  • C2 and 3
  • D2 and 4

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