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

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

A business acquired two assets, X and Y, on 1 January 2022, at a cost of $2000 each. It charges depreciation on asset X at 10% per annum using the straight-line method, and on asset Y at 10% per annum using the reducing balance method. Which statements are correct?

  • Aasset X incorrect; depreciation charge lower for X incorrect
  • Basset X incorrect; depreciation charge lower for X correct
  • Casset X correct; depreciation charge lower for X incorrect
  • Dasset X correct; depreciation charge lower for X correct

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