Accounting 0452 · IGCSE · Accounting for depreciation and disposal of non-current assets

Accounting for depreciation and disposal of non-current assets — practice question

Yeung’s financial year finishes on 31 March. He bought a machine for $4000$ on 1 April 2021. He expected it to last for $3$ years in use and to have a residual value of $100$. Yeung applies the straight-line method of depreciation. The machine was then sold on 1 April 2022 for $1500$. Calculate the loss on disposal.

A$1100$
B$1200$
C$2400$
D$2500$

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