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

Accounting for non-current assets — practice question

A company’s motor vehicles had a net book value of $312000 at the start of the year and $305000 at the year end. Over the year, an old vehicle was exchanged in part payment for a new vehicle. The part exchange value for the old vehicle was $8000. The balance of the purchase price of the new vehicle, $30000, was settled by cheque. What was the depreciation charge for the year?

  • A$29000
  • B$37000
  • C$45000
  • D$53000

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