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

Accounting for non-current assets — practice question

A business reported the net book value of motor vehicles as shown below: 31 December 2017: $238000 31 December 2018: $243000 In the year ending 31 December 2018, one new motor vehicle was bought for $47000. Another motor vehicle, which had cost $53000 and had accumulated depreciation of $31000, was sold for $7000. What was the depreciation charge for motor vehicles for the year ending 31 December 2018?

  • A$11000
  • B$20000
  • C$35000
  • D$42000

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