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

Accounting for non-current assets — practice question

Arnaud had a vehicle that was first purchased for $20000. In the year ending 31 May 2021, he spent $3700 on repairs and recorded depreciation of $4000. At 31 May 2021, the vehicle’s net book value stood at $12000. Arnaud disposed of the vehicle on that date, and the loss on disposal was $2500. What were the cash inflows and outflows associated with the vehicle in the course of the year?

  • Acash inflows $9500; cash outflows $3700
  • Bcash inflows $9500; cash outflows $7700
  • Ccash inflows $13500; cash outflows $6200
  • Dcash inflows $13500; cash outflows $8000

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