A-LevelAccountingAccounting for non-current assets9706/12 · Oct/Nov 2024 · Q71 Mark
Ryan purchased a van for $16000 on 31 December 2021. It is his policy to apply 25% per annum reducing balance depreciation for each part of the year the asset is held. Ryan traded the van in on 1 July 2024 for a $6150 reduction on the cost of a new van. What was the profit or loss made on the disposal of the van?
A$600 loss
B$1725 loss
C$150 profit
D$2150 profit
✓ Correct answer
B: $1725 loss
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