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

Accounting for non-current assets — practice question

In the year ending $31$ December $2017$, a business bought a vehicle costing $23500$. It was then sold on $30$ September $2020$ for $3500$. Depreciation was recorded at $20\%$ per annum by the straight-line method. A full year’s depreciation was charged in both the year of purchase and the year of disposal. What was the profit or loss on disposal of the vehicle?

  • A$1200$ loss
  • B$1200$ profit
  • C$5900$ loss
  • D$5900$ profit

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