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

Accounting for non-current assets — practice question

A business applies the straight-line method of depreciation. At the end of year 3, a machine that the business has owned for three years has a carrying value of $13000. When it was bought, its estimated useful life was five years and its residual value was $5000. What was the original cost of the machine?

  • A$18000
  • B$20000
  • C$25000
  • D$32500

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