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

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

Wentile bought a motor vehicle for \$35000. He expected it to remain in use for five years before being sold for \$5000. Wentile calculated depreciation on the motor vehicle using the straight-line method at a rate of $20\%$ per annum. What was the accumulated depreciation on this motor vehicle at the end of year 2?

  • A\$10800
  • B\$12000
  • C\$12600
  • D\$14000

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