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

Accounting for non-current assets — practice question

A business charges depreciation on its non-current assets at 20% using the straight-line method. Depreciation is worked out on a time basis in both the year of acquisition and the year of disposal. At cost, non-current assets, 31 December (previous year) $200000 Machinery purchased on 1 January (current year) $50000 Machinery disposed of on 30 September (current year) $40000 At cost, non-current assets, 31 December (current year) $210000 What is the depreciation charge for non-current assets in the year ended 31 December?

  • A$42000
  • B$48000
  • C$50000
  • D$52000

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