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

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

Atif writes off depreciation on his motor vehicles at 20% per annum by means of the reducing balance method. On 1 May 2024, the motor vehicles owned by Atif had originally cost $35000. Their accumulated depreciation stood at $12600 on 1 May 2024. What balance will be shown in Atif’s provision for depreciation account on 30 April 2025?

A$17080
B$17920
C$22400
D$26880

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