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

Accounting for non-current assets — practice question

A business acquired a non-current asset costing $500000$ and expected it to remain in use for $20$ years. At the end of that period, it was forecast to have a residual value of $100000$. Depreciation was calculated using the straight-line method. The non-current asset was sold after $10$ years for $120000$, and the selling costs amounted to $10000$. What was the loss on disposal?

  • A$130000$
  • B$140000$
  • C$180000$
  • D$190000$

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