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

Accounting for non-current assets — practice question

A sole trader bought a machine for $\text{\$}30000$, and its estimated residual value was $\text{\$}5000$. Its useful life was forecast to be five years. During the fourth year’s end, the machine was sold for a profit of $\text{\$}200$. Depreciation is calculated by the straight-line method. One full year’s depreciation is charged for every year that the asset is held. Calculate the amount of sale proceeds.

  • A$\text{\$}5200$
  • B$\text{\$}6200$
  • C$\text{\$}10200$
  • D$\text{\$}15200$

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