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

Accounting for non-current assets — practice question

Sara purchased a non-current asset. Depreciation was charged at $10\%$ per annum during years 1 and 2. It was then sold at a profit in year 3. The business does not charge depreciation in the year an asset is disposed of. How would profits change if the rate had been $15\%$ per annum?

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