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

Accounting for non-current assets — practice question

At the start of the year, Y Limited bought a motor van and paid the following expenditure: motor van $50000; delivery of motor van $4500; upgrading the engine $6000; 2-year maintenance contract $4000; annual licence fee $1200. The motor van is to be depreciated at 20% by the straight-line method. What is the total amount of expenses to be included in the statement of profit or loss for the year?

  • A$14340
  • B$15300
  • C$17300
  • D$20100

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