A-LevelAccountingDepreciation & Disposal of Non-Current AssetsOct/Nov 2019Paper 1 Q41 Mark
The accounting year of a company ends on 31 December. It purchased a warehouse for $100000 on 1 January 2013. The warehouse had an estimated useful economic life of 25 years. The company's accounting policy is to depreciate the warehouse using the straight-line method. On 1 January 2018, the warehouse was revalued at $120000. What was the depreciation charge for the year ended 31 December 2018?
A$4000
B$4800
C$5000
D$6000
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of depreciation & disposal of non-current assets within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
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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