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

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

On 1 January 2023, equipment was bought for $50\,000. It is anticipated that the equipment will last for five years and will have a residual value of $10\,000. Depreciation is charged using the straight-line method. What was the balance on the provision for depreciation of equipment account at 31 December 2024?

  • A$8000
  • B$10\,000
  • C$16\,000
  • D$20\,000

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