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

Accounting for non-current assets — practice question

June bought a new machine. She charged depreciation on it at a rate of $40\%$ per annum by the reducing balance method. At the end of two years, its net book value was $3600. What was the purchase price of the machine?

  • A$7056
  • B$9216
  • C$10\,000
  • D$22\,500

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