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

Accounting for non-current assets — practice question

The company’s financial year finishes on 31 December. On 1 April 2015, these payments connected with a new machine were made: purchase cost $50000 and installation $10000. Machinery is depreciated at 20% on cost per annum, with the calculation starting from the date of purchase. Calculate the depreciation of the new machine for the year ended 31 December 2015?

  • A$7500
  • B$9000
  • C$10000
  • D$12000

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