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

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

Maya charges depreciation on her motor vehicle at $25\%$ per annum by using the straight-line method. The motor vehicle had a cost of $15000. For the current financial year, depreciation was calculated wrongly at $15\%$ per annum. What impact will correcting this error have on the profit for the year?

  • Adecrease $1500
  • Bdecrease $2250
  • Cincrease $1500
  • Dincrease $2250

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