Y Limited purchased a motor van and incurred the following expenditure at the beginning of the year. $ motor van 50 000 delivery of motor van 4500 upgrading the engine 6000 2-year maintenance contract 4000 annual licence fee 1200 The motor van is to be depreciated at 20% using the straight-line method. What is the total amount of expenses to be included in the statement of profit or loss for the year?
✓ Correct Answer
The correct answer is B: $15300
📋 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...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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