A-LevelAccountingNon-current AssetsFeb/Mar 2020Paper 1 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
The correct answer is C. This question tests the candidate's understanding 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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