A-LevelAccountingNon-current AssetsOct/Nov 2018Paper 1 Q41 Mark
The following is an extract from the statement of financial position for a company at 31 December 2016. non-current assets cost $250 000, accumulated depreciation $95 000, net book value $155 000. The assets have a residual scrap value of $12500. The company's policy is to provide depreciation using the reducing balance method at a rate of 25% per annum. What was the depreciation charge for the year ended 31 December 2017?
A$35625
B$38 750
C$59375
D$62500
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of non-current assets within the Accountingsyllabus. The examiner's mark scheme requires...
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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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