A-LevelAccountingAccounting for non-current assets9706/12 · Feb/Mar 2020 · Q41 Mark
A business has a year end of 31 December. It purchased a motor vehicle on 1 January 2017 for $15000. The motor vehicle was sold on 31 March 2019 for $8000. Depreciation is calculated at 20% per annum using the reducing balance method on a month by month basis. What is the accumulated depreciation and profit/loss on disposal of the motor vehicle?
A5400 1600 loss
B5400 1600 profit
C5880 1120 loss
D5880 1120 profit
✓ Correct answer
C: 5880 1120 loss
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