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

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

Mandeep writes off his motor vehicles at a rate of $20\%$ by using the straight-line method. In the year of purchase, a full year’s depreciation is charged. On 1 January 2017, Mandeep purchased a motor vehicle for $20000. He then acquired a second motor vehicle on 1 June 2020 for $10000. What amount was charged as depreciation on motor vehicles for the year ended 31 December 2020?

  • A$2000
  • B$4000
  • C$5000
  • D$6000

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