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

Accounting for non-current assets — practice question

A company owns two non-current assets. Their details are listed below: Asset X: purchased on 1 Jan 2018, cost $10000, straight-line depreciation, useful life 5 years, residual value $2000. Asset Y: purchased on 1 Jan 2018, cost $20000, reducing balance depreciation, rate 20%, residual value nil. What was the combined depreciation expense shown in the income statement for the year ended 31 December 2019?

  • A$4800
  • B$5200
  • C$5600
  • D$6000

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