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

Accounting for non-current assets — practice question

A building was bought for $500000. In addition, the following expenses were incurred: $50000 for adapting the new building, $5000 in legal fees for the purchase of the building, $4000 to clean the building, and $20000 for the building manager’s salary. What was the capital cost of the building?

  • A$550000
  • B$555000
  • C$559000
  • D$579000

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