A-LevelAccountingAccounting for non-current assets9706/12 · Oct/Nov 2018 · Q31 Mark
A trader purchased a motor vehicle costing $36000 on 1 July 2016. The estimated useful life of the motor vehicle was five years and the estimated residual value was $6000. Depreciation is provided on a month-by-month basis using the straight-line method. The motor vehicle was sold on 31 March 2018 for $22500. What was the profit or loss on disposal of the motor vehicle?
A$900 loss
B$900 profit
C$3000 loss
D$3000 profit
✓ Correct answer
C: $3000 loss
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