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

Accounting for non-current assets — practice question

A business's year end is 31 December. It bought a non-current asset on 1 January 2020 for $100000. The asset was depreciated by the reducing balance method at $20\%$ per annum. It was then sold for $40000 on 1 January 2022. What was the loss on disposal?

  • A$20000
  • B$24000
  • C$40000
  • D$60000

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