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

Accounting for non-current assets — practice question

The net book values of a company’s non-current assets were as follows. On 1 January 2017, they stood at $20000$. By 31 December 2017, they had reduced to $15000$. Throughout 2017, non-current assets costing $7000$ were purchased. Non-current assets were disposed of, giving rise to a profit of $1000$. The depreciation charge for 2017 amounted to $8000$. What were the disposal proceeds of the assets sold?

  • A$3000$
  • B$4000$
  • C$5000$
  • D$8000$

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