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

Accounting for non-current assets — practice question

Vehicle X was acquired at a cost of $80000$. Its useful life was five years, and it was expected to be sold for $5000$ at the end of that period. Depreciation for vehicles is calculated by the straight-line method. After three years of use, Vehicle X is replaced by vehicle Y. The purchase cost of vehicle Y is partly paid using the part exchange value of $20000$ for vehicle X. Calculate the loss on disposal of vehicle X.

  • A$12000$
  • B$15000$
  • C$24000$
  • D$30000$

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