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

Accounting for non-current assets — practice question

The business's draft profit for the year is $\$53\,000$. Over the year, the business bought new premises and put the following expenses into the cost of the premises: legal fees $\$1\,500$ insurance $\$4\,500$ No depreciation is charged by the business on premises. What is the revised profit for the year?

  • A$\$47\,000$
  • B$\$48\,500$
  • C$\$51\,500$
  • D$\$59\,000$

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