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

Accounting for non-current assets — practice question

On 1 January 2016, a company’s non-current assets had a net book value of $100000, and this reduced to $80000 by 31 December 2016. In 2016, assets with a book value of $20000 were sold and a profit on disposal of $5000 was earned. Depreciation charged in 2016 totalled $8000. What was the expenditure on new assets in 2016?

  • A$3000
  • B$5000
  • C$8000
  • D$15000

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