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

Accounting for non-current assets — practice question

A company owned a non-current asset that originally cost $370000. The asset had a useful life of 10 years and an estimated residual value of $20000. A full year’s depreciation charge is taken in each year the asset is used. After 4 years, the asset was sold. The loss on disposal was $30000 and the disposal costs were $10000. What were the sale proceeds?

  • A$192000
  • B$200000
  • C$202000
  • D$210000

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