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. On 1 April 2021, he bought a machine for $4000. He judged that its useful working life would be 3 years and that its residual value would be $100. Yeung applies the straight-line method of depreciation. The machine was sold on 1 April 2022 for $1500. What was the loss on disposal?

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

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