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

Accounting for non-current assets — practice question

A trader acquired a machine on 1 January 2019. It was depreciated at 10% per annum by the straight-line method. He disposed of the machine on 1 January 2021 for $4000. The profit on disposal was $200. What was the machine’s original cost on 1 January 2019?

  • A$4560
  • B$4750
  • C$5040
  • D$5250

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