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

Accounting for non-current assets — practice question

A business has an accounting year that finishes on 31 December. An office building with a useful life of 40 years was bought on 1 January 2010 for $400\,000$. Its residual value is expected to be nil. Depreciation is calculated by the straight-line method. On 1 January 2018, the office building was revalued to $480\,000$. What is the net book value of the office building on 31 December 2019?

  • A$360\,000$
  • B$450\,000$
  • C$456\,000$
  • D$465\,000$

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