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

Accounting for non-current assets — practice question

A trader purchased a machine on 1 January 2015. He charged depreciation on it at $10\%$ per annum by the straight-line method, and he disposed of it on 1 January 2017 for $\$4000$. The profit on disposal was $\$200$. What was the machine's cost on 1 January 2015?

  • A$\$4560$
  • B$\$4750$
  • C$\$5040$
  • D$\$5250$

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