A-LevelAccountingDepreciation and Disposal of Non-Current AssetsOct/Nov 2021Paper 1 Q41 Mark
A business purchased a non-current asset for $500000 with an expected life of 20 years. After that time it was expected to be sold for $100000. It was depreciated using the straight-line method. The non-current asset was sold after 10 years for $120000 with selling costs of $10000. What was the loss on disposal?
A$130000
B$140000
C$180000
D$190000
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of depreciation and 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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