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, Raheem bought equipment for $850. It was expected to last for $5$ years and to have a scrap value of $50$. The asset was depreciated by the straight-line method. After $3$ years, the machine was sold for $100. What was the profit or loss on disposal?

  • A$240 loss
  • B$270 loss
  • C$50 profit
  • D$220 profit

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