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

Accounting for non-current assets — practice question

Two years earlier, a business bought two machines at a price of $25000 each. In the third year, one machine, which had a net book value of $16000, was sold. Another machine costing $30000 was bought. Depreciation is charged at 20% per annum by the reducing balance method on all assets owned at the end of the accounting period. What was the depreciation charge for the third year?

  • A$6000
  • B$9200
  • C$11000
  • D$12800

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI