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

Accounting for non-current assets — practice question

The data below about a business’s motor vehicles is provided. All motor vehicles were bought $10$ years ago for a combined cost of $500000$. Their present total net book value is $100000$. No motor vehicles were sold during the period. How has depreciation been worked out for these motor vehicles?

  • A$8\%$ per annum using the reducing balance method
  • B$8\%$ per annum using the straight-line method
  • C$20\%$ per annum using the reducing balance method
  • D$20\%$ per annum using the straight-line method

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