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

Accounting for non-current assets — practice question

At the beginning of the year, the net book value of motor vehicles stood at $150000. In the course of the year, one motor vehicle was disposed of for $26000. The disposal produced a profit of $2000. Depreciation is worked out at $10\%$ of the opening net book value. By the end of the year, the net book value had fallen to $145000. Calculate the cost of motor vehicles purchased during the year.

  • A$33500
  • B$34000
  • C$35500
  • D$36000

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