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

Accounting for non-current assets — practice question

A business bought a vehicle that had originally cost $27\,000 and was expected to have a residual value of $1000. Depreciation of $18,200 has been charged on this vehicle. The vehicle was traded in as part exchange for a new vehicle costing $29,500. A cheque for $19,000 was paid to complete the transaction. What profit or loss was made on the sale of the vehicle?

  • Aloss $1700
  • Bloss $2700
  • Cprofit $1700
  • Dprofit $2700

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