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

Accounting for non-current assets — practice question

The details below relate to a trader’s non-current assets: accumulated depreciation on 31 May 2015 $\$40000$; depreciation charge for the year to 31 May 2016 $\$9000$; accumulated depreciation on 31 May 2016 $\$46000$. In the year to 31 May 2016, one non-current asset with a cost of $\$10000$ was disposed of. The disposal resulted in a loss of $\$1200$. What sale proceeds were received for the non-current asset that was sold?

  • A$\$5800$
  • B$\$7000$
  • C$\$8200$
  • D$\$8800$

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