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

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

Susan operates as a trader. Her financial year ends on 5 April. On 6 April 2023, she purchased a motor vehicle for $10000. Depreciation was provided at 25% using the straight-line basis, and it was sold on 15 May 2025 for $3000. No depreciation was charged during the year of disposal. What was the profit or loss on disposal?

  • Aloss $2000
  • Bloss $2625
  • Cprofit $500
  • Dprofit $3000

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